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Moody’s: Outlook on Mauritius’s sovereign remains negative
Ratings agency Moody’s says that the outlook on Mauritius’s sovereign remains negative. Even with its strengths, Mauritius's credit profile reflects a high debt burden, and a slower than expected recovery in the tourism sector. Joining CNBC Africa to chart the way to a stable outlook for the country is David Rogovic, Vice President & Lead Analyst for Mauritius at Moody’s.
Thu, 22 Apr 2021 15:45:06 GMT
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AI Generated Summary
- Moody’s cautious stance on Mauritius is primarily due to concerns about the slow recovery of the tourism sector, which plays a crucial role in the country's credit profile.
- The agency predicts that Mauritius's tourism industry may not fully recover to pre-pandemic levels until around 2024, depending on global health conditions and vaccination rates.
- High debt burden and the need for fiscal consolidation are additional challenges facing Mauritius on its path to economic stability, despite its high-income status and affluent population.
Ratings agency Moody’s has continued to express caution over the sovereign outlook for Mauritius, citing concerns about the country's tourism sector. The slow recovery of tourism from the pandemic-induced downturn remains a key factor in Moody's assessment of Mauritius's credit profile. David Rogovic, Vice President & Lead Analyst for Mauritius at Moody’s, highlighted the importance of tourism in determining the country's future economic stability. According to Rogovic, the tourism sector in Mauritius is expected to lag behind in the recovery process, posing challenges for the government's efforts to narrow the fiscal deficit and stabilize the economy. Moody’s forecasts that tourism in Mauritius may only return to pre-pandemic levels by around 2024, contingent upon global health conditions and the pace of vaccinations. The agency acknowledges that some countries like the Maldives have implemented innovative strategies to boost tourism, such as promoting destination vaccination campaigns. However, Rogovic believes that Mauritius's unique tourism market, which heavily relies on European travelers, may hinder the replication of such strategies.
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