Economy | - Part 66

Kenya Must Curb Borrowing to Keep Debt Affordable, IMF Says

NAIROBI, Kenya, Capital Markets in Africa: At the rate Kenya is borrowing to fund its spending, the East African nation could accumulate more debt than it can afford to repay comfortably, according to the International Monetary Fund. While the nation’s current debt stock is sustainable at 49.8 percent of gross domestic product, the Treasury has at times struggled with cash management because of maturities coming in very close together, Armando Morales, the IMF’s resident representative in…

Egypt Has Proposed 18-month Reform Program to IMF

Posted on by The Editorial Team

CAIRO, Capital Markets in Africa: Three Egyptian dailies said Monday that Cairo was proposing to IMF delegates an 18-month reform program in return for a $12 billion loan over three years to shore up its economy, but that differences remained between the two sides on how to proceed. The reports by the privately-owned Al-Shorouk, Al-Masry Al-Youm and Al-Watan said the two sides were at odds over the size of a proposed devaluation of the Egyptian…

Moody’s assigns B2 first-time issuer rating to the Republic of Cameroon with stable outlook

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Yaoundé, Cameroon, Capital Markets in Africa: Moody’s Investors Service (“Moody’s”) has today assigned first-time local and foreign-currency issuer ratings of B2 to the Government of Cameroon. The ratings carry a stable outlook. The rating assignment is based on the following key drivers: (1) Low (+) economic strength balancing the country’s exposure to the oil shock—albeit more contained than for regional peers—and our expectation of a stronger potential growth outlook supported by the infrastructure investment strategy…

Ghana Scraps Eurobond Sale as Costs Soar on Fiscal Concerns

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ACCRA, Ghana, Capital Markets in Africa: Ghana scrapped plans to sell its fourth Eurobond in as many years, balking at the price investors demanded amid concern that the West African nation may relax its commitment to fiscal targets ahead of parliamentary and presidential elections. The government will monitor markets and revive the sale “at the optimal time and the right conditions,” the Finance Ministry said in a statement on Thursday after concluding investor meetings in the…

South Africa Local-Currency Debt Rating Downgraded by Fitch

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South Africa, Capital Markets in Africa: Fitch Ratings downgraded South Africa’s local-currency debt one level to move it into line with the foreign-currency rating, bringing the nation’s 1.7 trillion rand ($118 billion) of domestic debt a step closer to junk level. The one-step cut to BBB-, the lowest investment grade, was part of a review of Fitch’s local-currency assessments, applying new criteria that resulted in downgrades for 23 issuers, the company said in a report that was…

Nigeria | Decade’s Peak Inflation Deepens Dilemma for Nigeria in Slump

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LAGOS, Nigeria, Capital Markets in Africa: Caught between the highest inflation rate in more than a decade and an economy set to contract for the first time since 1991, Nigeria’s central bank may opt to do nothing. Governor Godwin Emefiele is under pressure to limit inflation, which accelerated to almost double the upper end of the central bank’s target range last month, while the economy will probably contract by 1.8 percent this year, according to the International Monetary…

Fitch: Global Sovereign Rating Changes From Criteria Update

Posted on by The Editorial Team

LONDON, Capital Markets in Africa: Fitch Ratings published on Friday 22 July a review of its entire sovereign rating portfolio, incorporating changes to ratings derived from the application of its revised Sovereign Rating Criteria (dated 18 July 2016). The review focused on the notching relationship between sovereign Long-Term Local Currency (LTLC) and Long-Term Foreign Currency (LTFC) Issuer Default Ratings (IDRs), a review of existing Short-Term Foreign Currency (STFC) IDRs and the assignment of new Short-Term…

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