The Republic also has short-term IDR in foreign currency “B” and country ceiling rating at ‘ B -‘.
MOSCOW, 29 Feb. Fitch ratings has assigned Belarus long-term Issuer default ratings in foreign and national currency at level “B-” with a stable Outlook, the Agency said.
Also Fitch has assigned the Republic short-term IDR in foreign currency “B” and country ceiling rating at ‘ B -‘.
“The ratings on Belarus reflect the significant external vulnerabilities and a history of frequent crises, on the one hand, and good public finances and structural indicators, in particular GDP per capita and human development level significantly higher than that of comparable issuers”, — stated in the message.
According to the Agency, external liquidity is a key factor in adverse credit. Total external financing requirements as a percentage of foreign exchange reserves amount to 260% which is the highest among Fitch rated countries with developing economies. Net reserves are negative. Receive support in certain situations, usually from Russia, allows the Republic to keep a good history of servicing the external debt.
The Belarusian economy is subject to frequent crises, as soft economic policy leads to growing internal and external imbalances, causing the volatility of growth and inflation significantly above the median level of comparable issuers, the Agency said.