Fitch Ratings: the “CCC+” rating confirmed in Congo : Orishas-finance

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Fitch Ratings: the “CCC+” rating confirmed in Congo

14/03/2023

Source : ORISHAS FINANCE

Categories: Economy/Forex

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Fitch Ratings: the “CCC+” rating confirmed in Congo

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La The long-term default rating of foreign currency issuers (IDR) in the Republic of Congo was confirmed on March 10, 2023 to 'CCC+' by Fitch Ratings.

The “CCC+” rating reflects high public debt, weak governance indicators, high dependence on oil, and poor public finance management with a recent history of defaults. Congo has a history of poor public financial management (GFP ), including two consecutive defaults on its single eurobond in 2016 and 2017 and the restructuring of external commercial debt ( to oil traders), which ended in 2022. The country has a significant stock of domestic and external arrears, amounting to around 17.9% and 3.9% of GDP respectively at the end of 2022. He is also facing litigation related to a longstanding dispute with former Commisimpex suppliers (claiming 1.7 billion dollars).

Fitch forecasts that Congo will have budget surpluses (on a cash basis) of 2.2 ;% of GDP in 2023 and 1.8% in 2024, compared with an estimate of 1.7% in 2022. The projected surpluses reflect strong government revenues from oil.

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