Fitch upgrades Congo

Fitch Ratings said it upgraded the Republic of Congo's long-term foreign-currency issuer default rating to CCC from CC.

The upgrade reflects an improvement in government liquidity from higher oil revenues, Fitch said, and reduced risk of disruptions to payments of bondholders, despite lingering uncertainty over the conclusion of debt restructuring discussions and agreement on an International Monetary Fund program.

The recovery in oil prices and production, as well as fiscal consolidation measures, offer temporary liquidity relief to government finances, the agency said.

The default risks on Congo's market debt instruments have lessened, Fitch added.

The ratings also reflectsthe country's low governance indicators and uneven track record of debt repayment, unsustainable debt levels, narrow funding options and vulnerability to external shocks, the agency said.

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