Fitch Ratings lowers Angola’s credit rating to “B+”

29 September 2015

Fitch Ratings has lowered Angola’s credit rating from “BB-” to “B+”, to reflect the effects that low oil prices have had on the economy, the agency announced in a statement released Friday.

The agency also said the outlook was stable, due to the measures approved by the Angolan government to respond to the negative effects of the low price of the main raw material for export.

“Angola’s dependence on oil and gas leaves the country exposed to the sharp drop in oil prices, which led to a rise in public debt, falling reserves and weaker growth,” said the Fitch report issued Friday.

On the positive side, the agency highlighted the timely response of the government to the negative effects, including a tighter monetary policy, fiscal measures and devaluation, which may limit the downward revision of the credit rating.

Fitch estimates suggest Angola’s public debt exceed 40 percent of GDP this year, against 23.1 percent of GDP in 2013 and the budget deficit reached 4 percent of GDP. (macauhub/AO)