S&P cuts Belarus development bank

S&P said it cut its foreign-currency ratings on Development Bank of the Republic of Belarus to SD, selective default, from CC and the ratings on its 2024 bond to D (default) from CC. S&P affirmed the CCC local-currency issuer rating.

The downgrade follows the grace period for the bank to make the $16.9 million November interest payment on the 2024 bond expiring, the agency said.

“We understand that nonpayment has been caused by the effective loss of DBRB's access to the U.K. financial system, through which the payment had to be processed according to the bond's terms, resulting from international sanctions on Belarus' government and government-related entities. DBRB is currently under several EU, U.S., and U.K. sanctions, some of which limit the institution's access to the financial markets and infrastructure in corresponding jurisdictions,” S&P said in a press release.

The outlook for DBRB’s local-currency ratings remains negative.

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