Credit-Rating affirms Republic of Belarus at byAA
Credit-Rating agency (Kiev-Minsk) has today announced that it affirmed at byAA the long-term national scale rating of to the Republic of Belarus. The outlook on the rating is stable.
The national long-term credit rating of byAA reflects very high creditworthiness of the Government of Republic of Belarus in the domestic market versus other Belarus-domiciled obligors.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
The credit rating assigned to Republic of Belarus is based upon results of analyzing the Republic’s economic and financial indicators, its demographic profile, state of the labour market, the information on country’s debt obligations in 2005-2008 and 9M2009 and prospects for the country’s social and economic development. Moreover, Credit-Rating has considered information regarding the country’s government system, its political situation and interaction between different branches of power.
Factors maintaining the Belarus’s credit rating
- Active participation of the central government in all sectors of the national economy aimed at maintenance of the situation, and securing high social guarantees to the population.
- The President of the Republic holds principal powers, which permits to conduct important structural reforms and contributes to quick decision-making under adversities.
- Moderate debt burden of the Republic’s government.
Factors constraining the Belarus’s credit rating
- High dependency of revenue items of the consolidated budget upon results of the country’s foreign economic activities under high concentration or foreign commercial activities on a single partner, the Russian Federation (yet the share of this partner has been decreasing), and high concentration of tax revenues by the biggest tax-payers, with 20 largest tax-payers contributing to a. 30% of the budget revenues.
- Growth of the Republic’s consolidated debt, which, under considerable level of integration between corporate and state economy sectors may prompt pressure on the Republic’s budget expenditures accompanied by simultaneous hampered access to international financial markets.
- Decelerating pace of Belarus’s economic development, which resulted in decreased revenues of the State budget in 9M2009.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic
department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
