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Moody’s Sees East African Economies Expanding Fastest Globally

NAIROBI (Capital Markets in Africa) – East African economies will be among the fastest growing globally over the next two years with rates of 5.5 percent to 7 percent, driven by public spending on infrastructure, according to Moody’s Investors Service. Rwanda and Tanzania are expected to grow at 6.5 percent to 7.5 percent annually, while Uganda and Kenya could see rates of 5 percent – 6 percent. The services sector, which makes up the largest share of…

Ratings Cos. Gave South Africa Benefit of the Doubt, Nene Says

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JOHANNESBURG (Capital Markets in Africa) – Credit ratings companies gave South Africa the “benefit of the doubt” by keeping the nation’s credit assessments unchanged after the recent political transition, Finance Minister Nhlanhla Nene said. With all three major credit rating companies that now have a stable outlook on their assessments they “are giving us a chance to implement our reforms,” Nene told reporters in London on Friday. President Cyril Ramaphosa’s rise to power since December initially boosted sentiment and the…

ETHIOPIA: Ratings affirmed on strong growth prospects

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ADDIS ABABA (Capital Markets in Africa) – Moody’s Investors Service affirmed Ethiopia’s long-term issuer rating and senior unsecured rating at ‘B1’ with a ‘stable’ outlook. It said that the ratings are supported by the country’s very strong growth potential, and expectations of narrow fiscal deficits and low public debt levels. In contrast, it noted that the ratings are constrained by contingent liabilities from state-owned enterprises (SOEs), structural shortages of US dollars and elevated political risks….

South Africa Looks for Extra $1.8 Billion of Spending Cuts

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JOHANNESBURG (Capital Markets in Africa) – South Africa will look to cut spending by a further 25 billion rand ($1.8 billion) over the next three years as the nation tries to avert another downgrade of its rand debt to junk. President Jacob Zuma on Monday asked the Presidential Fiscal Committee, led by Finance Minister Malusi Gigaba, to finalize the plans for expenditure reductions for the 2019 fiscal year that starts in April. This is in addition to the…

South Africa’s $14 Billion Question as Downgrade to Junk Looms

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JOHANNESBURG (Capital Markets in Africa) – Wall Street and other global banks say it’s a question of when, not if, South Africa loses investment grade status on its local-currency ratings. The bigger question is how much damage that would cause. Bank of America Corp. estimates there may be $14 billion of outflows if rand debt is excluded from Citigroup Inc.’s World Government Bond Index, which requires non-junk ratings from Moody’s Investors Service and S&P Global Ratings. That…

Moody’s downgrades Angola’s ratings to B2, outlook stable

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LUANDA (Capital Markets in Africa) – Moody’s Investors Service has today downgraded the long-term issuer and senior unsecured ratings of the Government of Angola to B2 from B1 and changed the outlook to stable from negative. It also affirmed Angola’s short-term issuer ratings at Not Prime. The key drivers supporting the downgrade are: 1) Lower economic strength in light of the diminished medium-term growth outlook, constrained by foreign currency shortages, high inflation, lower public sector…

Moody’s: Côte d’Ivoire’s credit profile reflects economy’s increasing diversification and high growth prospects

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ABIDJAN (Capital Markets in Africa) — Côte d’Ivoire’s (Ba3 stable) credit profile is primarily supported by the economy’s growing diversification and high growth prospects, which are underpinned by structural reforms and public investment in infrastructure, Moody’s Investors Service said in a report today. The country’s low institutional strength is a key credit constraint. The annual update, ” Government of Côte d’Ivoire — Ba3 Stable, Annual credit analysis”, is now available on www.moodys.com. Moody’s subscribers can…

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