Fitch Ratings downgrades Belarus’ long-term credit rating to ‘CCC’, indicating a high probability of default

March 9, BPN. International rating agency Fitch Ratings has downgraded Belarus’ Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘B’.

On the credit rating scale, the ‘CCC’ level means “high probability of default.”

Long-term ratings assess the issuer’s ability to fulfill its debt obligations in a timely manner.

Fitch analysts believe that Belarus’s role in Russia’s invasion of Ukraine may lead to new sanctions that could affect the exchange rate of the national currency and would also create significant risks to macro-financial stability.

Fitch Ratings is not certain that Russian authorities would be able to provide financial support to the Belarusian government in the current situation. The agency considers this support “necessary for Belarus to meet it 2023 Eurobond repayment.”

Fitch Ratings, along with Standard & Poor’s (S&P) and Moody’s, is one of the so-called “Big Three” international rating agencies.

On March 4, S&P also downgraded the long-term credit rating of Belarus from ‘B’ to ‘CCC’.