Moody's downgrades Belarus

Moody's Investors Service said it downgraded the government of Belarus' senior unsecured debt rating to C from Ca. Concurrently, the agency lowered the long-term local- and foreign-currency issuer ratings to C from Ca and changed Belarus' outlook to stable from negative.

“The C senior unsecured debt ratings on outstanding foreign-currency debt reflect Belarus' forced currency re-denomination of eurobond repayments that Moody's sees as a default. The expectation is that the eventual losses incurred by bondholders will likely exceed 65%,” the agency said in a press release.

Moody’s noted that even the help from Russia only partly offsets the damage that sanctions will probably inflict on the country’s economy and public finances.

“The stable rating outlook indicates that Belarus' credit profile is unlikely to improve materially unless sanctions are lifted, which is not Moody's baseline given the expected prolonged nature of the Russia-Ukraine war,” the agency said.

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