The international rating agency Fitch lowered its forecast for the banking sector of Russia, Ukraine, Kazakhstan, Armenia, Azerbaijan, Belarus and Georgia to “negative” in the wake of the coronavirus COVID-19 and falling of oil prices.

Uzbekistan is the only country in the region whose banking sector outlook remains stable, the agency said.

“Economic pressure caused by the spread of coronavirus and the decline in oil prices is a negative factor for Russian banks and neighboring markets, it could lead to low results in the rating,” Fitch notes.

It also states that the degree of pressure on banks will depend on the degree and duration of the economic downturn, specific risks for the national economy and external finances (for example, a decline in oil prices, tourism revenues or remittances), individual policies and business portfolios banks.