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

On October 2, 2020 Standard&Poor’s affirmed its “B/B” long- and short-term foreign and local currency sovereign credit ratings on Belarus, keeping the outlook «negative».

Belarus’s ratings are supported by improved macroeconomic policy in recent years, as evidenced by adherence to a floating exchange rate regime, tighter fiscal policy and inflation remaining close to the target.

Keeping of negative outlook reflects risks to financial stability, given the recent partial outflow of deposits and the increased demand for foreign currency.

According to analysts, sanctions announced by EU, volatile sentiment toward emerging markets, and comparatively weak economic indicators, including due to the COVID-19 pandemic, will affect Belarus’s access to foreign capital markets in the coming months.

The agency forecasts a reduction in Belarus’s economy in 2020 on 3 per cent.