According to S&P, Belarus' economic growth is decelerating. In the absence of structural reform, the agency expects potential growth to remain modest. Also, despite improved economic policymaking in recent years, substantial balance-of-payments and fiscal risks remain. The ratings are supported by the financial assistance the country receives from the Russian government.
"The sovereign ratings are constrained by Belarus' low institutional effectiveness; vulnerable fiscal and balance-of-payments positions; substantial off-balance-sheet expenditure; and despite recent improvements, the still-limited flexibility and effectiveness of monetary policy. Although economic performance has strengthened following the recession in 2015-2016, the country's headline growth rates remain below those of countries at a comparable level of economic development," S&P explained.
The detailed report can be found on S&P's official website.