Credit pressures in certain sub-Saharan African nations should ease in 2019 as credit profiles display some resilience inside their lower rating levels, Moody’s Investors Service said because it sees regional economic growth expanding at a faster pace than a year ago.
Growth in gross domestic product to your region probably will accelerate to a few.5% in 2010 from a predicted 2.8% in 2018, Moody’s said in 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 positive impact better growth rates within the denominator of debt to GDP,” the business said. “Debt trajectories for many sovereigns remain vulnerable to lower-than-expected growth, exchange-rate depreciations and contingent liability risk from weak state-owned enterprises.”
Fifteen on the 21 sovereigns that Moody’s rates in sub-Saharan Africa have a very stable outlook, while six hold an adverse stance, it said.
? 2019 Bloomberg L.P
