Ratings agency Fitch has downgraded Angola’s long-term foreign currency issuer with no outlook assigned. The ratings agency sited that the large increase in government debt and reduced external financing as reasons for the downgrade. Angola is among the many African countries that are faced are with a great deal of fear due to the large sums of debt that will be harder to commit to amid the COVID-19 crisis. Ridle Markus, Africa Strategist, Absa Corporate and Investment Banking joins CNBC Africa for more.
We view the government's forecast of gross loan debt rising to 81.8% of GDP in FY21, much higher than the 65.6% in the original budget, as realistic. However, we believe its expectation that debt will peak at 87.4% in FY24 is optimistic. This would require sufficient fiscal consolidation to achieve a primary budget surplus in that year, which would be South Africa's first since 2008, towards the end of the commodity boom.
Ratings agency Fitch has revised the outlook on Kenya’s B+ sovereign ratings to negative from stable, while affirming the rating. And the Financial Times reported that Senegal President Macky Sall, in an interview, disclosed that oil and gas projects in the country could be delayed by up to two years due to COVID-19. Ridle Markus, Africa Strategist, Absa Corporate and Investment Banking joins CNBC Africa for more.
We’re into the second month since South Africa was kicked out of the World Government Bond Index following the downgrade to junk status by rating agencies Fitch, S&P Global and Moody’s.
Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...
Moody’s will cut South Africa’s sovereign credit rating later on Friday as a recession deepened by the impact of coronavirus frustrates economic reform efforts aimed at reducing government debt, a Reuters poll of economists found.
Ratings agency Fitch affirmed its South African outlook as negative. In a note released late yesterday evening, the agency said the outlook reflects uncertainty about government’s ability to manage its high and rising levels of debt and pressure on policy-making. Joining CNBC Africa for more is Jan Friederich, Senior Director and Head of Middle East and Africa Sovereign Ratings at Fitch.
Ratings agency Fitch on Friday affirmed South Africa’s credit rating at ‘BB+’, in sub-investment grade, but downgraded the outlook from stable to negative.