Fitch Ratings raises Angola’s debt rating

25 May 2011

Luanda, Angola, 25 May – Credit rating agency Fitch Ratings Tuesday raised its rating on Angola’s sovereign debt in foreign currency to “B+” to “BB-” on a stable outlook.

With this raised rating, Angola now stands at the same level as Nigeria, its biggest competitor in the region as an oil producer and just two levels below an “investment grade” rating.

According to Veronica Kalema, of Fitch Ratings in a statement issued Tuesday, the improved debt classification reflects improvement of the macroeconomic framework under the IMF programme in Angola, alongside improved performance between tighter fiscal and monetary control and the price of oil.

This improved rating is good news for Angola, whose government is preparing to issue Euro bonds in September totalling US$500 million.

Specialists at Fitch also said that, “the country has been able to overcome the effects of the global financial crisis of 2008-2009, relatively quickly. Substantial delays in payments were cleaned up in the first quarter of 2011 and reserves have been recovering,” the agency’s statement said. (macauhub)