BELARUS NEWS AND ANALYSIS

DATE:

22/08/2007

Belarus Receives Sovereign Credit Ratings

The financial services company Standard and Poor's has assigned a B+ foreign-currency long-term sovereign credit rating, a BB local-currency rating, and a B short-term sovereign rating to Belarus, Belapan reported on August 21. Standard and Poor's said the ratings reflect the state's domination of the Belarusian economy, the country's weak external liquidity, and the uniquely centralized nature of the Belarusian political system, which reduces the predictability of policy choices. On the other hand, the company noted that the ratings are supported by comparatively high wealth and development levels, low general government debt, a relatively strong external balance sheet, and significant economic potential due to substantial industrial capital stock and a highly educated workforce. A country's sovereign credit rating is a reflection of confidence in its ability to honor its hard-currency borrowing commitments. Belarus's Finance Ministry welcomed the ratings in a statement on August 21, saying they will lead to a significant increase in foreign investment inflows to Belarus. JM

Source:

http://www.rferl.org/newsline/2007/08/3-cee/cee-220807.asp