Credit pressures in certain sub-Saharan African nations should ease in 2019 as credit profiles display some resilience in their lower rating levels, Moody’s Investors Service said mainly because it sees regional economic growth expanding more quickly than recently.
Growth in gdp to your region may accelerate to three.5% this year from nearly 2.8% in 2018, Moody’s said within an emailed statement Monday.
“Moody’s expects government debt ratios to deteriorate only marginally or stabilize in 2019, reflecting ongoing fiscal consolidation as well as the positive impact of higher growth rates for the denominator of debt to GDP,” the business said. “Debt trajectories for many sovereigns remain prone to lower-than-expected growth, exchange-rate depreciations and contingent liability risk from weak state-owned enterprises.”
Fifteen within the 21 sovereigns that Moody’s rates in sub-Saharan Africa have got a stable outlook, while six hold a bad stance, it said.
? 2019 Bloomberg L.P