Fitch Ratings maintains Angola’s credit rating at BB-

8 November 2013

Fitch Ratings has maintained the credit rating for Angola’s long term debt at BB- with a positive outlook and likewise maintained short term debt at B, the credit agency announced in a statement released on Thursday in London.

Confirmation of the credit ratings stems from the fact that public debt has been falling since 2010, the year it reached 37 percent of GDP. In 2012 it fell to 25 percent and should close 2013 at 24 percent, which is less than the average in countries rated BB of 39.5 percent of GDP.

Fitch Ratings indicated that the downward trend of Angola’s public debt should continue in the next two years, falling below 20 percent of GDP in 2015.

The 2014 general state budget should present a deficit of 4.9 percent of GDP, above the 3.8 percent forecast for this year. Fitch Ratings asserts that the projects included in the document will likely exceed real execution capacity, whereby the state accounts should remain balanced until 2015.

Inflation should stay below 10 percent this year, for the second year in a row, reflecting the Angolan currency’s exchange rate stability as well as more consistent monetary policy. (macauhub)