S&P trims Zambia

S&P said it downgraded Zambia’s long-term foreign-currency rating to SD, but affirmed the CCC- long-term local-currency rating.

Last week, the country’s government announced the suspension of debt service payments to external commercial creditors because of liquidity difficulties compounded by the pandemic. Zambia has since failed to make an interest payment due on Oct. 14, for its April 2024 eurobond, which led to the downgrade, S&P said.

“We forecast that Zambia will remain in payment default for at least the six months of the standstill period, during which the government hopes to complete a broader debt restructuring,” S&P said in a press release.

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