Belagroprombank JSC's problem loans (Stage 3 and purchased and originated credit impaired [POCI]) have declined in 2019 but remain elevated compared to the average in the Belarus banking system. Taking into account the bank's continuous efforts on asset quality improvement via adopting more prudent risk management practices and expected further balance sheet clean-up, and the efforts of the bank to increase provisioning levels, we expect the bank's asset quality metrics to align gradually with domestic peers over the next two years. We are therefore affirming our 'B/B' ratings on Belagroprombank. The stable outlook on Belagroprombank reflects our view that the ratings will not change materially over the next 12 months. We also take into account the stable outlook on Belarus.
