Moody’s agency upgrades credit rating for Angola’s sovereign debt

12 August 2014

Moody’s has upgraded from Ba3 to Ba2 the credit rating for Angola’s sovereign debt and likewise revised the outlook from stable to positive, the credit rating agency announced in a statement released in London.

The upgraded rating is due to a strong medium term economic outlook and the Angolan government’s progress implementing structural reforms. On the downside, low economic diversification is associated to a very weak institutional framework.

The agency also reported that in the short term Angola’s sovereign debt remains without quality for investment.

The updated credit rating places Angola at the same level as Portugal, Romania and Jordan and above Nigeria, Paraguay and Montenegro.

The sovereign risk rating is the grade assigned by agencies or institutions which specialise in analysing the credit risk of countries that issue debt on the international market. It assesses the ability and readiness of a country to fully and punctually honour debt payments.

The Jornal de Angola newspaper reported that the evaluation was released after representatives from Moody’s visited Angola, where they met with ministries, the National Bank of Angola and officials from other public and private institutions. (macauhub/AO)