Moody’s and Fitch analyse Angola’s risk

15 March 2017

Analysts from credit rating agencies Moody’s and Fitch Ratings on Thursday in Luanda concluded working visits to Angola under the ongoing assessments of the economic governance and investment attraction programme, the Angolan Finance Ministry said.

The two missions, which began on 9 February, included talks with the Angolan authorities on issues related to recent developments of the country’s main macro-economic indicators, said the ministerial statement issued in Luanda.

With these missions to Angola, the two agencies intend to analyse the performance of the oil sector, the production profile, new discoveries, auction blocks and reserve levels, the current state of commercial banking, monetary policy and its results, the balance of payments, development of the financial system, the exchange rate regime in the oil sector and foreign reserves.

The Moody’s and Fitch Ratings teams along with the government’s economic team analysed financing and management of public debt, the loan portfolio and the process of settlement of domestic arrears, the tax reform process and the programme to drive tax revenues in 2017.

The two agencies also reviewed the objectives of the State Budget and the risk factors that affect the sovereign rating of the Angolan State.

In September 2016 Fitch Ratings downgraded Angola’s credit rating to “B” or non investment quality, with a negative outlook.

In February Standard & Poor’s (S&P) kept its credit rating on Angola at “B” with a negative outlook for the next 18 months, despite the likely increase in the price of oil, according to a note sent to investors. (macauhub)