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

On March 22, 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 remained unchanged at «B», keeping the outlook «negative».

According to agency, Belarus’s ratings are supported by moderate government debt, the flexible exchange rate regime and financial support from the Russia.

Keeping of negative outlook reflects agency’s position on risks to financial stability of the banking system, given partial outflow of deposits in 2020 and the increased demand for foreign currency.

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

The agency forecasts the growth in Belarus’s economy in 2021 on 0,5 per cent.