BELARUS NEWS AND ANALYSIS

DATE:

23/08/2007

Belarus assigned 'B1' issuer ratings with stable outlook - Moody's

MUMBAI (Thomson Financial) - Moody's Investors Service assigned to the Republic of Belarus a 'Ba2' foreign currency country ceiling and issuer ratings of 'B1' for foreign and local currency debt obligations of the government.

The ceiling is based on the government bond rating and Moody's assessment of a moderate likelihood of a payments moratorium in response to a government default.

Also assigned was a 'B2' foreign currency bank deposit ceiling along with a local currency country ceiling and a local currency bank deposit ceiling of 'Baa3'. The local currency country ceiling rating is the highest rating possible for any obligor domiciled in the Republic of Belarus.

Short term ratings of 'not prime' were assigned to the government bond ratings, the country ceilings for foreign currency bonds and deposits, and the country ceiling for local currency deposits.

All ratings carry a stable outlook.

"The ratings reflect both the recent macroeconomic successes of Belarus and the likelihood that rapidly increasing energy prices from 2007 onward will occasion substantial restructuring of enterprises and may lead to a deterioration of some macroeconomic indicators," said Moody's vice president Jonathan Schiffer.

He added that "while the Belarusian 'model' for promoting strong economic growth with relatively little social inequality has performed very well over the past five years, the degree to which existing institutions and mechanisms can cope with a qualitatively new economic environment is uncertain."

Source:

http://www.iii.co.uk/news/?type=afxnews&articleid=6254519&action=article

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