Rating agencies rate Angola’s debt for the first time

20 May 2010

Luanda, Angola, 20 May – The three financial rating agencies said Wednesday they had, for the first time, rated Angola’s sovereign debt, with Standard & Poor’s and Fitch deciding on a B+ rating and Moody’s on a B1 “not prime” rating.

After a long process that began at the start of 2009, Angola was granted a rating by S&P of b+ for long term debt and B for short term debt, with Fitch having a similar classification for the long term with a positive outlook. Moody’s opted for a lower rating of B- “not prime”.

The Angolan Economy Minister, Manuel Nunes Júnior in response to the ratings said they were “very positive” as they showed the country’s “good economic performance.”

In relation to issuing the debt on the international market Nunes Júnior said that the subjects “should be dealt with separately” as Angola had now managed to be on the ratings list and, according to the needs the country will have in terms of funding, and based on existing alternatives, “a decision will be made.”

The process of Angola being rated by the three international agencies began in 2009 when Luanda announced it planned to issue bonds of US$4 billion after a sudden drop in oil prices.