S&P affirms Belarus’ ratings at 'B/B'; Outlook Negative
<p> MINSK, Jul 1 - PrimePress. S&P Global Ratings on 30 June 2021 affirmed its 'B/B' long-term and sort-term foreign- and local-currency sovereign credit ratings on Belarus. The outlook remains negative. </p> <p> </p> <p> The negative outlook on Belarus indicates the risk that the protracted political crisis and international sanctions could weigh on the country's economic, balance-of-payments, and fiscal performance more than we currently expect over the next 12 months, also endangering the stability of the banking system. </p> <p> </p> <p> “We also factor in the possibility that financial support to Belarus from Russia could become less certain, perhaps as a result of stricter conditions, some of which Belarus might find difficult to meet.” </p> <p> </p> <p> S&P says they could lower the ratings if Belarus' foreign exchange reserves were to deteriorate more than currently anticipated, perhaps as a result of more severe repercussions of international sanctions on the country's current account receipts and/or accelerated resident deposit withdrawals and conversions to foreign currency. This scenario could also threaten financial stability in the country and pose contingent liability risks for the government. </p> <p> </p> <p> “In addition, we could downgrade Belarus if financial support from Russia proved insufficient to comfortably meet Belarus' upcoming public debt redemptions.” </p> <p> </p> <p> “We could revise the outlook to stable if lingering political uncertainty was replaced by a credible resolution path that would also support Belarus' economic, fiscal, and financial sector stability. A positive rating action could also follow a significant improvement of the economy's foreign exchange reserve position.” End </p>
2021-07-02
Primepress
S&P affirms Belarus’ ratings at 'B/B'; Outlook Negative
MINSK, Jul 1 - PrimePress. S&P Global Ratings on 30 June 2021 affirmed its 'B/B' long-term and sort-term foreign- and local-currency sovereign credit ratings on Belarus. The outlook remains negative.
The negative outlook on Belarus indicates the risk that the protracted political crisis and international sanctions could weigh on the country's economic, balance-of-payments, and fiscal performance more than we currently expect over the next 12 months, also endangering the stability of the banking system.
“We also factor in the possibility that financial support to Belarus from Russia could become less certain, perhaps as a result of stricter conditions, some of which Belarus might find difficult to meet.”
S&P says they could lower the ratings if Belarus' foreign exchange reserves were to deteriorate more than currently anticipated, perhaps as a result of more severe repercussions of international sanctions on the country's current account receipts and/or accelerated resident deposit withdrawals and conversions to foreign currency. This scenario could also threaten financial stability in the country and pose contingent liability risks for the government.
“In addition, we could downgrade Belarus if financial support from Russia proved insufficient to comfortably meet Belarus' upcoming public debt redemptions.”
“We could revise the outlook to stable if lingering political uncertainty was replaced by a credible resolution path that would also support Belarus' economic, fiscal, and financial sector stability. A positive rating action could also follow a significant improvement of the economy's foreign exchange reserve position.” End