S&P affirms Belarus’ sovereign credit ratings at ‘B’, outlook negative
<p> MINSK, Mar 24 - PrimePress. S&P Global Ratings on 22 Mar 2021 affirmed its long- and short-term foreign- and local-currency sovereign credit ratings on Belarus at 'B/B' with a negative outlook, the Finance Ministry of Belarus said in a release. </p> <p> </p> <p> Belarus’ ratings are supported by a moderate level of public debt, a flexible exchange rate regime and financial support from Russia, the agency said. </p> <p> </p> <p> The persistence of the negative outlook reflects S&P's view of the risks to the financial stability of the banking system, given the partial outflow of deposits in 2020 and the increased demand for foreign currency. The ratings are constrained by fragile balance of payments and budget positions, and limited monetary policy flexibility. </p> <p> </p> <p> According to S&P analysts, sanctions imposed by the EU, volatile emerging market sentiment and uncertain economic prospects, including from the COVID-19 pandemic, could affect Belarus’ access to foreign capital markets in the coming months. </p> <p> </p> <p> The agency forecasts Belarus’ economy to grow by 0.5% in 2021. </p> <p> </p> <p> As previously reported, S&P Global Ratings affirmed in early October 2020 the long-term and short-term sovereign credit ratings of Belarus for liabilities in foreign and national currencies at ‘B’, Outlook Negative (as of September 2020). The agency said it might revise the forecast to ‘Stable’ if political uncertainty faded out, which would help stabilize the economic, budgetary and financial sectors of Belarus. End </p> <p> </p>
2021-03-25
Primepress
S&P affirms Belarus’ sovereign credit ratings at ‘B’, outlook negative
MINSK, Mar 24 - PrimePress. S&P Global Ratings on 22 Mar 2021 affirmed its long- and short-term foreign- and local-currency sovereign credit ratings on Belarus at 'B/B' with a negative outlook, the Finance Ministry of Belarus said in a release.
Belarus’ ratings are supported by a moderate level of public debt, a flexible exchange rate regime and financial support from Russia, the agency said.
The persistence of the negative outlook reflects S&P's view of the risks to the financial stability of the banking system, given the partial outflow of deposits in 2020 and the increased demand for foreign currency. The ratings are constrained by fragile balance of payments and budget positions, and limited monetary policy flexibility.
According to S&P analysts, sanctions imposed by the EU, volatile emerging market sentiment and uncertain economic prospects, including from the COVID-19 pandemic, could affect Belarus’ access to foreign capital markets in the coming months.
The agency forecasts Belarus’ economy to grow by 0.5% in 2021.
As previously reported, S&P Global Ratings affirmed in early October 2020 the long-term and short-term sovereign credit ratings of Belarus for liabilities in foreign and national currencies at ‘B’, Outlook Negative (as of September 2020). The agency said it might revise the forecast to ‘Stable’ if political uncertainty faded out, which would help stabilize the economic, budgetary and financial sectors of Belarus. End