Standard&Poor’s affirmed Belarus “B/B” Ratings (outlook negative)

On June 30, 2021 Standard&Poor’s affirmed its “B/B” long- and short-term foreign- and local-currency sovereign credit ratings on Belarus, keeping the outlook «negative».

The deviation from the calendar plan of the agency’s rating actions is due to the introduction of sanctions against the Republic of Belarus by the EU on June 24, 2021.

According to analysts, sanction will have a mild impact on the country’s balance of payments position and fiscal sector. As the S&P notes, the macroeconomic outlook of Belarus remains weak amid possibility of stronger international sanctions and recurring need for financial support from Russia. The agency estimates risk of increased sanctions pressure on the economy and financial stability of the country, which reflects a negative outlook.

S&P forecasts the growth in Belarus’s economy in 2021 on 0,5 per cent.