Angola is expected to keep to debt servicing schedule, Moody’s says

12 January 2018

Angola is expected to keep up with its debt servicing and not go into default, despite some ambiguous official statements, rating agency Moody’s said in an analysis note released Thursday.

The Angolan government announced plans this year to restructure its foreign debt and at the same time let the national currency float within a pre-established currency band against the euro and the dollar.

In the note, Moody’s vice president and sovereign debt analyst Aurelien Mail, said the statements made during the presentation of the Macroeconomic Stabilisation Programme led to speculation that the government intended to restructure and as a result goes into default on its foreign obligations to commercial entities.

Moody’s, after contacts with the government, now assumes that the Angolan government intends this year to manage its responsibilities more actively (particularly after the entry into force of a new exchange rate regime) not intending to enter into negotiations that could be considered as leading to default, he said.

The note goes on to say that Moody’s will continue to monitor this debt-related process closely and adds that the main factors that, on 20 October 2017, led to the downgrade of the B2 rating – declining economic growth, high risk of lack of liquidity and external pressures – remain unchanged. (macauhub)