Fitch downgrades Belarus to a default-like level

July 8, BPN. Fitch Ratings has downgraded Belarus’ long-term rating from ‘CCC’ to ‘C’, which means that a default or default-like process has begun.

Fitch analysts link the downgrade to the Belarusian authorities’ decision to fulfill their debt obligations on foreign financial markets in Belarusian rubels instead of U.S. dollars.

Fitch noted that the first payment in rubels for a U.S. dollar interest payment on the 2027 Eurobond was made on 29 June, violating bond documentation that prohibits settlement in alternative currencies.

On March 9, Fitch downgraded Belarus’ long-term Belarus’ long-term rating from ‘B’ to ‘CCC’.

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