Fitch rates DBRB notes B

Fitch Ratings said it assigned an expected B rating with recovery rating of RR4 on JSC Development Bank of the Republic of Belarus's (DBRB) proposed dollar-denominated and Belarusian ruble-denominated senior unsecured notes.

Fitch said it rated the notes in line with the bank's long-term foreign-currency issuer default rating.

The terms of both issues provide noteholders with a put option in case of the Belarus sovereign ceasing to directly or indirectly control 100% of the bank's equity and in the event that the Belarus sovereign's subsidiary liability is amended or removed, the agency said.

A default of Belarus on its obligations over a certain threshold would represent a case of cross-default for the bank, Fitch noted.

DBRB's long-term foreign-currency issuer default rating is equalized with that of the Belarus sovereign, which reflects the sovereign's high propensity to support the bank, if needed, the agency said.

The ratings reflect the company's limited ability to provide support in foreign currency given the sovereign's weak external position and potentially significant contingent liabilities associated with the wider public sector, Fitch said.

The notes constitute direct, unsubordinated and unsecured obligations of the bank and will rank equally with all its other unsecured and unsubordinated obligations, the agency said.

The proceeds under the notes will be partly used to refinance existing debt, lengthen the bank's debt-maturity profile and finance the bank's core operations, which are defined by its policy role, Fitch said.

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