S&P Holds DR Congo Rating at CCC+, Lowers Outlook to Stable
S&P Global Ratings held Democratic Republic of Congo’s long-term foreign-currency debt rating at CCC+ and lowered its outlook to stable from positive amid the fallout from the coronavirus pandemic.
Emergency foreign assistance should help balance out the worst effects of the virus on Congo’s economy, which could rebound if copper and cobalt demand and production increase as expected, the ratings agency said Friday on its website.
“DRC’s economic environment has significantly deteriorated, due largely to Covid-19, which will take a heavy toll on the country’s economic and budgetary performances in 2020,” S&P said. “Despite relatively solid prospects once Covid-19 impacts abate, thanks to higher mining export potential and recently contained domestic tensions, we still consider that DRC’s ability to meet its financial commitments over the medium-to-long term depends on favorable business, financial, and economic conditions.”
Economic growth is set to contract 2.4% this year with inflation rising above 15%, according to the country’s central bank. The Congolese franc has fallen more than 18% against the dollar since January, according to data compiled by Bloomberg.
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