Moody's agency cuts Belarus credit rating one notch
The agency claims that the current account deficit is the reason for it.
The international rating agency Moody’s Investors Service has cut Belarus’ sovereign foreign currency credit rating one notch - to B2 from B1, the forecast is negative, informs the Wall Street Journal’s website.
The reason for cutting the credit rating is the current account deficit that may reach 16% of gross domestic product in 2010, specialists think. Furthermore, Moody’s thinks that although Belarus does expect to receive some financing from Russia as well as through privatizations, foreign assistance is likely to become an additional burden for the Belarusian economy.
The agency has informed that Belarus’ rating may be increased again if the authorities manage to transition from its current external debt-funded growth model to one that relies on productivity and competitiveness improvements in the world market, informs RIA Novosti.
