S&P affirms Kenya's credit rating with stable outlook
S&P Global Ratings has affirmed Kenya's long and short term foreign and local currency credit ratings at B+/B with a stable outlook.
Mon, 10 Apr 2017 14:22:35 GMT
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AI Generated Summary
- S&P Global Ratings highlights Kenya's monetary flexibility and strong economic fundamentals as supporting factors for the credit rating
- Key risks facing Kenya include the impact of drought, election-related uncertainties, and a credit growth slowdown due to regulatory changes in the banking sector
- Despite challenges, S&P maintains a stable outlook for Kenya's credit rating, emphasizing the importance of fiscal prudence and addressing economic vulnerabilities
S&P Global Ratings has affirmed Kenya's credit rating at B+/B with a stable outlook despite concerns over the upcoming August general election, high government fiscal deficits, and rising debt stock. The ratings agency highlighted Kenya's monetary flexibility, liquid domestic financial markets, strong headline growth, and diversified economic base as factors supporting the country's credit rating. Gardner Rusike, Associate Director of Sovereign Ratings at S&P, discussed the key factors behind the rating in an interview with CNBC Africa. Rusike mentioned that Kenya's GDP growth has remained robust, helping to narrow the current account deficit and potentially reduce the fiscal deficit. However, he pointed out three main risks facing Kenya: the impact of drought on expenditure, election-related risks, and a slowdown in credit growth due to regulatory changes in the banking sector. Despite these challenges, S&P maintains a stable outlook for Kenya.
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