Fitch Ratings affirms Belarus Issuer Default Rating at “B” with a Negative Outlook

On November 5, 2021 Fitch Ratings has affirmed Belarus's Long-Term Foreign-Currency Issuer Default Ratings at “B”, the Negative Outlook.

The rating reflects a high level of per capita income, an improved economic policy framework and clean debt repayment records. At the same time analysts noted subdued economic growth prospects, low foreign exchange reserves level, government debt exposed to foreign currency risks vulnerable banking sector and significant external indebtedness of the country.

Despite the sanctions imposed, according to Fitch, macroeconomic stability has remained in the country and economic indicators for the first nine months of 2021 exceeded analyst’s expectations. Fitch has improved the forecasts for the growth of the Belarus’s economy in 2021 with 0,7 to 2,1 per cent.

According to the agency, the continued negative outlook reflects vulnerabilities, including as a result of sanctions imposed, which poses risks to macroeconomic and financial stability.