Moody's rates Ivory Coast notes B1

Moody's Investors Service said it assigned a B1 rating to the Ivory Coast’s $500 million senior bond offering and B1 local- and foreign-currency issuer ratings and Baa3 ceilings for local- and foreign-currency bonds to the country. The outlook is positive.

The agency said the main drivers of the Ivory Coast's B1 ratings are

• The economy's growing diversification and high growth prospects, which are underpinned by renewed political stability but balanced by low per capita income;

• Weak institutional strength as reflected in weak governance indicators, though the country's participation in the West African Economic and Monetary Union promotes price stability;

• Moderate fiscal fundamentals, as debt-relief initiatives have lowered the government's debt burden, while its fiscal deficit remains limited under IMF and donor oversight; and

• Moderate susceptibility to event risk, which balances credit strengths such as strong external fundamentals under the West African Economic and Monetary Union framework and lingering concerns about long-term political stability.

The positive outlook reflects Moody's assessment of Ivory Coast's prospects for accelerating economic growth and structural reforms, which the agency said are likely to be supported by political stability, IMF and donor support.

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