Moody’s Downgrades Four African Nations
Moody’s Investors Service has slashed the credit ratings of Angola, Congo, Nigeria and Gabon on the ongoing oil price slump (Nigeria and Angola are Africa’s two biggest oil producers).
The credit ratings of Nigeria and Gabon (see the respective Rating Actions here and here) were cut to B1 from Ba3 with Moody’s citing the negative impact depressed oil prices have had on these governments’ balance sheets, liquidity and creditworthiness. However, Nigeria was issued a stable outlook on confidence in the country’s credit fundamentals when compared to its peers.
Angola’s credit rating was also lowered to B1 and the Republic of the Congo was lowered to B2 from B1 on similar concerns about the countries’ high dependence on oil constraining their financing options.
Yahoo! Finance recently had a segment on the downgrades:
- Five Emerging Markets Squeezed by Currency Pegs (Bloomberg)
- Moody’s Downgrades South Africa Banks, Insurance Companies and Others (Moody’s)
- Moody’s Downgrades Macao to Aa3 with Negative Outlook (Moody’s)
- BRICS May Set Up Emerging Markets Ratings Agency (Economic Times)
- Africa’s Smaller Stock Markets Plan to Join Forces (Yahoo! Finance)
- Mark Mobius: Nigeria is a Positive Emerging Markets Play (WSJ)
- Downgraded Countries Were Top Emerging Market Performers in 2016 (IOL)
- FLASHBACK: Moody’s Downgrades Qatar Rating to Aa3 But Changes Outlook to Stable from Negative (Moody’s)
- To Succeed in Africa, a Business Must Succeed in Nigeria (Economist)
- Investors Exit Africa for Other Frontier Markets (WSJ)