S&P Global Ratings revised its outlook on Belarus to negative from stable, saying the country faces increasing economic, financial stability and external risks following the disputed presidential election in August.

President Alexander Lukashenko claimed to win a sixth term in August's election, raising political uncertainty as it triggered massive protests amid reports of poll violations. In the wake of the election, residents' conversion of savings to foreign currency and partial deposit withdrawals accelerated.

S&P Global Ratings said continued withdrawals and foreign currency conversions could deplete the central bank's foreign currency reserves, which already dropped by $1.4 billion in August. This could force authorities to ring-fence central bank funds for national government use, eroding the banking system's stability and presenting contingent liability risks, according to the rating agency.

The rating agency also warned of protracted political uncertainty as a result of the election, which could weigh on the country's medium-term growth prospects, access to foreign capital markets and, ultimately, its credit ratings.

S&P Global Ratings affirmed Belarus' long- and short-term foreign- and local-currency sovereign credit ratings at B/B.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.