International rating agency Moody's Investors Service has downgraded credit rating of Belarus by one point from B1 to B2. Its outlook remained "negative." As noted in the agency, the reason for downgrading was a large current account deficit of payments balance, which can reach 16% of GDP in 2010.
Moody’s emphasized that very probable loans from Russia could become merely an additional burden for the Belarusian economy. The rating upgrading is possible if the government of Belarus improves the country’s competitiveness in the global market and reduces its economy’s dependence on external loans and grants, RIA «Novosti» news agency reports, citing The Wall Street Journal.
According to Telegraf, service of Standard & Poor’s credit rating also lowered its long-term credit rating of Belarus on obligations in foreign currency from «B +» to «B,» for long-term liabilities in national currency — from «BB» to «B +.» The outlook on long-term ratings is called «negative,» and transfer and convertibility risk for the Belarusian non-sovereign borrowers is assessed as «B.»
