Fitch downgraded Belarus’ rating to ‘C’ from ‘CCC’, following the announcement by the finance ministry on 29 June to service USD debt in Belarusian ruble. Since the bond documentation does not allow for settlements in other currencies, as of 13 July Belarus will enter default on its 2027 Eurobond payment. Even if the finance ministry replaces its debt obligation on its Eurobonds with local government securities, denominated in USD but payable in Belarusian ruble, it would still enter a default.