18.07.2012
S&P raises Belarus’ short-term ratings from ‘C’ to ‘B’
MINSK, 18 July (BelTA) – The international rating agency Standard & Poor's has revised Belarus’ short-term ratings upwards, from ‘C’ to ‘B’, the official website of the agency informs, BelTA has learnt.
“The short-term credit ratings of the Republic of Belarus were raised to 'B' from 'C'; 'B-' long-term ratings were affirmed; the outlook is stable,” the press release reads.
On 15 May, 2012, Standard & Poor's published its methodology to link short-term and long-term ratings for corporate and sovereign issuers. Based on the application of these criteria, the agency raised the short-term foreign and local currency sovereign credit ratings on Belarus to 'B' from 'C'.
“The upgrade does not reflect an improvement in our view of the country's short-term creditworthiness. The stable outlook reflects our view that improvements in Belarus' external liquidity, and successful stabilization efforts, have significantly reduced the likelihood that we would lower the ratings over the next 12 months,” the press release reads.
The ratings are supported by Belarus' relatively high, albeit declining, GDP per capita for the rating level; moderate general government deficits; substantial industrial capital stock; and highly educated workforce. However, according to the agency, there are some factors restraining the improvement in the country’s ratings.
“Government policy leading to a sustained improvement in competitiveness, a diversification of funding sources, and increased availability of foreign exchange could in our opinion eventually support an upgrade,” the agency noted.
“The short-term credit ratings of the Republic of Belarus were raised to 'B' from 'C'; 'B-' long-term ratings were affirmed; the outlook is stable,” the press release reads.
On 15 May, 2012, Standard & Poor's published its methodology to link short-term and long-term ratings for corporate and sovereign issuers. Based on the application of these criteria, the agency raised the short-term foreign and local currency sovereign credit ratings on Belarus to 'B' from 'C'.
“The upgrade does not reflect an improvement in our view of the country's short-term creditworthiness. The stable outlook reflects our view that improvements in Belarus' external liquidity, and successful stabilization efforts, have significantly reduced the likelihood that we would lower the ratings over the next 12 months,” the press release reads.
The ratings are supported by Belarus' relatively high, albeit declining, GDP per capita for the rating level; moderate general government deficits; substantial industrial capital stock; and highly educated workforce. However, according to the agency, there are some factors restraining the improvement in the country’s ratings.
“Government policy leading to a sustained improvement in competitiveness, a diversification of funding sources, and increased availability of foreign exchange could in our opinion eventually support an upgrade,” the agency noted.