Fitch downgrades Belarus’ foreign currency rating to ‘limited default’ – SABC News

Global rating agency Fitch downgraded Belarus’ long-term foreign currency rating to “limited default” from “C” on Monday.

The downgrade follows the expiration of a 14-day grace period on payments on Belarus’ 2027 Eurobonds in their original currency, US dollars, which the country said it prefers to be serviced in its own currency, the Belarusian ruble.

The payment was originally due on June 29.

However, Fitch said Belarus’ local currency debt remains unaffected and affirmed its long-term local currency rating at ‘CCC’, with the Belarusian government continuing to service its local currency debt on time.

“The downgrade applies only to the government’s long-term external debt obligations,” the agency said in a statement.

Last week, ratings agency S&P Global kept Belarus’ foreign currency rating at “CC/C” but said it could downgrade it to “selective default” if bond payments are not made in their original currency by the end of the grace period .

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