Minsk has not been able to pay Eurobond holders ’interest in foreign currency due to sanctions. The country’s foreign currency rating has been downgraded to “limited default”.
The international rating agency Fitch downgraded Belarus’s long -term rating on the foreign currency from “C” (“default is inevitable”) to RD (“limited default” or default on certain obligations). This is stated in a statement released on July 19.
“Following the expiration of the 14-day grace period on July 13, 2022 for coupon payments on Eurobonds 2027, we have downgraded Belarus’ long-term foreign currency rating to ‘limited default’, ”Fitch said.
The agency added that the reduction only applies to the country’s long -term external debt obligations. The long -term local currency rating remains at ‘CCC’.
Recall, on July 15, the rating agency Moody’s recognized coupon payments on Eurobonds Belarus-27, made in Belarusian rubles, as Belarus’s default on external debt.
At the end of June, the agency came to the same conclusion in relation to Russia due to the impossibility of serving the public debt in dollars.
Minsk decided to repay debts on Eurobonds in Belarusian rubles
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Source: korrespondent
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