Fitch Ratings affirms Belarus Issuer Default Rating at “B” (outlook negative)

On November 13, 2020 Fitch Ratings affirmed Belarus's Long-Term Foreign- and Local-Currency Issuer Default Ratings at “B”, changing the outlook from «stable» to «negative».

The revision of the outlook to «negative» reflects Fitch’s view about relatively low international foreign exchange reserves and a weak banking sector of Belarus. According to analysts despite the low external liquidity and vulnerability to currency risk Belarus fulfilled about 80% of its liability in foreign currency in January-October 2020; near-term fiscal and external financing risks are contained due to the availability of alternative sources of financing and cash buffers.

According to analysts, global uncertainty related to the Coronavirus pandemic, financial markets volatility could lead to additional depreciation of Belarusian ruble, which can negatively affect international reserves, financial sector stability and government debt.