Moody’s has downgraded Namibia’s long-term senior unsecured bond and issuer ratings to Ba1 from Baa3.

The rating agency says the down grade is primarily because the country appears unable to honour it’s debts, and has not put up sufficient policy measures to contain the debts and looks unable to rise sufficient revenues to fund government expenditures.

The rating agency says the factors behind its decision include the “erosion of Namibia’s fiscal strength due to sizable fiscal imbalances and increasing debt burden.”
It also says for the coming years there looks to be a “limited institutional capacity to manage shocks and address long-term structural fiscal rigidities,” and there is a “risk of renewed government liquidity pressures in the coming years.”

Read the full statement here

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