Fitch downgrades Seychelles

Fitch Ratings said it downgraded Seychelles’ long-term foreign-currency issuer default rating by two notches to B+ from BB, with a stable outlook.

Fitch said it sees the country’s economy contracting by 14% this year, mostly because of the pandemic and its effect on tourism. The agency estimates tourism accounts for an estimated 25% of Seychelles’ GDP.

“The fiscal balance is set to deteriorate, from a surplus of 0.2% of GDP in 2019 to a forecast deficit of 15.1% of GDP in 2020, the second largest in the B rating category,” Fitch said in a press release.

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