Scope Ratings reviews its ratings either yearly, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations. Scope performs monitoring reviews to determine whether outstanding ratings remains proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology/ies, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for the Black Sea Trade and Development Bank (A/Stable; S-1/Stable) on 21 April 2021. This monitoring note does not constitute a rating action nor indicates the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

The A issuer rating assigned to the Black Sea Trade and Development Bank (BSTDB) reflects the supranational’s high capitalisation, sound liquidity profile, strong asset quality, well-diversified portfolio and stable profitability as well as the credit challenges the bank faces given its mandate to operate in a high-risk environment despite its shareholders’ limited ability to provide exceptional capital support if ever needed. The Stable Outlook reflects Scope’s assessment that the BSTDB’s balance sheet is resilient to i) a deteriorating operating environment, as captured by the creditworthiness of its key shareholders; ii) the Covid-19 crisis, and its possible impact on asset quality and profitability; and iii) the bank’s plans to expand operations and increase leverage in line with its updated medium-term strategy for 2019-22.

The methodology applicable for the reviewed ratings and rating Outlooks (Rating Methodology: Supranational Entities, 11 November 2020) is available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Alvise Lennkh, Executive Director

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