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

On September 17, 2021 Standard&Poor’s carried out another assessment of the sovereign credit rating of the Republic of Belarus on the results of which the long-term and short-term foreign and local currency sovereign credit ratings of Belarus were maintained at the "B" level with a negative outlook.

According to agency, Belarus’s ratings are supported by moderate level of public debt, increase in foreign exchange reserves, the flexible exchange rate regime, as well as financial and logistical support from Russia. The latter, coupled with the recent IMF Special Drawing Rights allocation, will substantially mitigate short-term external liquidity risks.

Experts predict that Belarus' economy will expand 2% in 2021, supported by double-digit export growth because of the fast recovery at key trading partners (Russia and the EU) in first-half 2021.

At the same time, analysts note that economic projections remain subject to a high degree of uncertainty, which is associated with the impact of international sanctions.

Keeping of negative outlook reflects agency’s position on the vulnerable positions of the balance of payments and the budget, as well as the limited flexibility of monetary policy