Fitch affirms Belarus rating at "B-" with stable outlook

Fitch Ratings has affirmed Belarus' long-term sovereign credit rating at "B-" and short-term credit rating also at "B" with a "stable outlook."

The ratings reflect a high degree of vulnerability to external factors and frequent crises, the agency noted.

The country's total demand for external financing reached 182 percent of its foreign exchange reserves.

"The financial support, usually from Russia, allows the country to maintain a good history of servicing the external debt. Net external debt is high at 50 percent of GDP, which is significantly higher than for countries with a "B" rating, which is usually near 20 percent," Fitch said.

The financing of the current account deficit, in addition to the maintenance of sovereign debt in the amount of 3.2 billion U.S. dollars, will depend on external support, it added.

Earlier the Council of the Eurasian Fund for Stabilization and Development (EFSD) approved a two-billion-U.S. dollar financial loan to Belarus. The loan will be provided in seven tranches during 2016-2018. Belarus has received the first and second tranches of 500 and 300 million U.S. dollars.

Belarusian authorities are also actively negotiating with the International Monetary Fund (IMF) about getting a three-billion-U.S. dollar loan. The IMF is calling on Belarus to implement drastic economic reforms. Endi