Fitch affirmed Belarus’s ratings at B, with a stable outlook. Fitch said macroeconomic stability improved, along with income and human development indicators. At the same time, FX reserves remain low, growth prospects are subdued, government debt is highly exposed to FX risks, and the banking sector remains weak. Fitch expects average inflation to equal 5.8% this year and 6.0% next year. FX reserves are forecast to reach USD7.7bn by end-year, corresponding to 1.9 months of import coverage. As far as FX debt service is concerned, 46% of the expected USD3.1bn for this year was repaid in the first half of the year.
S&P in April also affirmed its B/B ratings on Belarus, with a stable outlook. Moody’s upgraded Belarus to B3 from Caa1 last year.