Moody’s downgrades Angola

Moody's Investors Service said it downgraded the foreign and local currency long-term issuer ratings and the foreign currency senior unsecured rating of Angola to B3 from B2 and changed the outlook to stable.

This concludes the review for downgrade initiated in February.

The agency also affirmed Angola's short-term issuer ratings at Not Prime.

Moody's lowered Angola's foreign-currency bond ceiling to B2 from B1, the foreign currency deposit ceiling to Caa1 from B3 and the local currency bond and deposit ceilings to Ba3 from Ba2. The short-term foreign-currency bond ceiling is unchanged at Not Prime.

The agency said the downgrade reflects that domestic and external refinancing risk will remain high for at least the next two years and that Angola's fiscal metrics and debt burden are no longer in line with B2 peers.

The stable outlook reflects the broadly balanced credit pressures, with a potential gradual recovery supported by increasing oil production, Moody’s said.

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