OREANDA-NEWS. On October 09, 2007 Fitch Ratings has upgraded Belgazprombank’s (BGB) Long-term Issuer Default rating (IDR) to ‘B’ from 'B-' (B minus) and Support rating to ‘4’ from ‘5’. Fitch also affirmed BGB’s Short-term IDR at ‘B’ and Individual rating at ‘E’, reported the press-centre of Belgazprombank.

The Outlook for the Long-term IDR remains Stable. The bank's Long-term IDR is at Belarus’s Country Ceiling.

The ratings upgrades reflect the lowered transfer and convertibility risks, associated with sovereign events. Sovereign risk, however, remains significant, and thus limits the extent to which the shareholder’s support can be factored into the ratings. BGB's Long- and Short-term IDRs are based on Fitch's view of the likelihood of support for the bank forthcoming from its main shareholder, Russian integrated gas utility Gazprom (rated 'BBB-' (BBB minus)/Positive Outlook).

BGB's Individual rating reflects its small size by international standards, modest capital position, loan concentration risk, exposure to foreign exchange risk and structural weaknesses in the operating environment. It also takes into account BGB's sound asset quality, which is attributable to the developed expertise in SME lending and improved earnings performance.

BGB is one of the leading SME lenders in Belarus and has a long-standing cooperation with international financial institutions IFC and EBRD. BGB is ultimately controlled by Gazprom.