S&P trims Eurasian Development Bank

S&P said it lowered Eurasian Development Bank’s foreign-currency credit rating to BBB- from BBB and placed it on CreditWatch with negative implications.

The ongoing war between Russia and Ukraine is expected to pose loan portfolio growth risks to the bank, S&P said.

“We foresee a heightened probability of rapid asset quality deterioration that will weigh on EDB's capital adequacy position over the next three months given the high concentration of its loan exposures to Russia and Belarus,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch placement in the next 90 days once it has more clarity on how the economic and financial stress in both Russia and Belarus will affect EDB's loan portfolio, and the consequences for its capital base and financial risk profile.

“The negative implications of the CreditWatch indicate that we could lower our ratings on EDB during the 90-day period.”

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