Moody’s shifts Tunisia view to negative

Moody’s Investors Service said it confirmed the B2 issuer rating of the government of Tunisia and changed the outlook to negative.

Moody’s also confirmed the Central Bank of Tunisia’s B2 senior unsecured rating, (P)B2 senior unsecured shelf rating and changed the outlook to negative. The Central Bank of Tunisia is legally responsible for the payments on all of the government’s bonds. These changes conclude the review for downgrade started on April 17.

“The negative outlook reflects the economic, financial, social and political challenges the government faces in implementing fiscal consolidation and structural reforms required to secure official support and maintain confidence-sensitive funding options as refinancing risks prevail ahead of upcoming eurobond maturities. While Tunisia’s institutions have built a track record of maintaining policy direction and some progress in implementing reforms, governance weaknesses and social challenges have also contributed to slow progress,” Moody’s said in a press release.

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