Fitch Ratings Says Default in Belarus Imminent

London-based international rating agency Fitch Ratings has downgraded the long-term issuer default rating for the Republic of Belarus from "CCC" to "C." The new indicator means the beginning of default.

The agency notes that the rating was lowered after the announcement of the Ministry of Finance of Belarus on June 29 that the country would pay the Eurobond payments in Belarusian rubles instead of U.S. dollars. Then Belarus made the first payment in local currency.

If Belarus fails to pay in dollars by the end of the grace period on July 13, Fitch will consider it a default and downgrade the country to RD (restricted default), and the rating of this Eurobond issue to D.