Fitch: Lesotho affirmed; outlook negative

Fitch Ratings said it changed the outlook on Lesotho's long-term local currency issuer default rating to negative from stable while affirming the long-term local currency issuer default rating at BB and the long-term foreign currency issuer default rating at BB-.

The outlook on the foreign currency issuer default rating remains stable.

Fitch said it has also affirmed Lesotho's country ceiling at A and the short-term foreign currency issuer default rating at B.

"After several years of positive revenue surprises from South African Customs Union receipts, the prospect for public finances is now much more challenging, explaining the negative local currency outlook," said Purvi Harlalka, associate director in Fitch's Middle East Africa sovereign team.

"However, the foreign currency outlook remains stable since Lesotho's external balance sheet will remain much stronger than peers."

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