Moody’s lowers Namibia

Moody’s Investors Service said it downgraded the long-term issuer and senior unsecured ratings of Namibia’s government to Ba3.

“The downgrade reflects a further weakening in Namibia’s fiscal strength despite policy statements of plans to rein in the fiscal deficit. The debt burden is now markedly higher; it will continue to rise for the foreseeable future; debt affordability is weakening. The coronavirus shock continues to pressure Namibia’s revenue generation capacity, a trend exacerbated by Namibia’s weak growth prospects, notwithstanding moderate institutional adjustment capacity and external buffers that backstop creditworthiness,” Moody’s said in a press release.

Concurrently, the agency trimmed the long-term local-currency bond to Baa2 from Baa1 and the long-term foreign-currency bond ceiling to Ba1 from Baa3.

The outlook remains negative.

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