Rating agency S&P on Friday, March 27, 2026, lowered Senegal's local currency debt rating from "B-/B" to "CCC+/C".

The agency cites heightened refinancing risks and the government's growing reliance on short-term domestic debt, while negotiations on a new IMF program are stalled. It estimates that Senegal will face gross financing needs of approximately 26% of GDP in 2026. With the freeze on IMF funding and access to international markets closed since the authorities discovered undeclared debts in September 2024, the government has increasingly turned to the regional bond market.

In a statement, S&P said that "the 2026 budget, which aims for ambitious fiscal consolidation, will prove difficult to execute, as the fallout from the Middle East conflict drives up public spending, including the debt burden, which we estimate at about 25% of government revenues."