Moody’s Downgrades Belarus’ Credit Rating from Ca to C

The rating agency Moody’s downgraded the credit rating of Belarus from “Са” to “С”, the rating outlook was changed from “negative” to “stable”. According to the agency, the sanctions will cause long-term damage to the economy and public finances of the republic, writes Interfax with reference to the press service of Moody’s.

Moscow’s support “only partially offsets” the impact of the restrictions, which could increase the risk of default on current and future debt issues, the statement said. The agency believes that “Belarus’s limited ability to service part of its external debt in foreign currency in the face of tightening sanctions, (…) is likely to continue.”

Moody’s predicts that the country’s GDP could grow by 0.3% this year, given the gradual adjustment of the economy to restrictions after falling by 4.7% in 2022.

Last December, Belarusian President Alexander Lukashenko declaredthat, as a result of joint efforts, Russia and Belarus were able to overcome the possible negative consequences of Western sanctions. At the same time, according to Lukashenka, not everything has worked out yet. “On a number of sensitive issues, governments have exhausted negotiating opportunities,” he said.

On March 5, 2022, Moody`s announced that it was suspending commercial activities in Russia in connection with the military operation in Ukraine. The decision affected both Moody’s Investors Service and Moody’s Analytics.