Fitch Ratings raises Angola’s sovereign debt outlook

24 May 2012

Credit rating agency Fitch Ratings Wednesday raised its outlook on Angola’s sovereign debt from stable to positive, due to more prudent fiscal and monetary policies.

“The revision of Angola’s outlook to positive reflects the country’s prudent economic policies which have helped rebuild and strengthen public and external balance sheets. These measures should ensure that Angola is less vulnerable to an adverse oil price,” the Fitch statement said.

Noting it was necessary to introduce improvements to regulation, governance, and the rule of law, Fitch said that inflation remained “stubbornly” high due to the high cost of transport and high percentage of imported products.

Fitch’s credit rating on Angola’s sovereign debt stands at three levels below investment grade. (macauhub)