Moody's Assesses Credit Rating Of Belarus

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Moody’s rating agency has reassessed the acceptability of credit ratings of Belarus. According to its results, the current ratings were confirmed at C level.

Moody's still considers payments on Eurobonds in local currency as a default.

‘The rating also reflects Belarus' limited ability to service its debt in the face of tightening sanctions in response to support for Russia's military invasion of Ukraine,’ the agency said.

Moody's assesses the risk of default on current and future debt issues of Belarus as very high. The agency estimates that Belarus' public debt was around 45 per cent of GDP in 2023 and is likely to remain around that level this year.

‘The stable outlook indicates that Belarus' credit profile is unlikely to improve significantly unless sanctions are lifted, which we do not expect in the medium term’.

‘C’ is the lowest rating on Moody's rating scale and it is unlikely that Belarus' rating will rise from its current position if sanctions are not lifted, which would be a key condition for resuming foreign currency external debt repayments. Even if the sanctions are lifted, Belarus' liquidity position is likely to remain very weak, which limits its ability to service the sovereign debt,’ noted Moody's.

We remind you that other credit agencies of the big three, Fitch and S&P, refused to publish the ratings of Belarus.