Fitch cuts Belarus’ foreign currency rating to ‘restricted default’

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

The downgrade follows the expiry of a 14-day grace period on Belarus’ 2027 Eurobond debt payments in their original currency, US dollars, which the country said would rather be serviced inits own currency, the Belarusian rouble.

The payment was originally due on June 29.

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