S&P hikes Zambia local currency rating

S&P said it raised its long-term local-currency sovereign credit rating on Zambia to CCC+ from CCC-. The agency also affirmed the long-term foreign-currency ratings at SD (selective default) and the ratings on the individual issues maturing in 2022, 2024 and 2027 at D.

In December, the government and the IMF reached a staff-level agreement for a three-year arrangement under the Extended Credit Facility for Special Drawing Rights for about $1.4 billion. The agreement is subject to IMF board approval.

“The raising of our local currency rating reflects our assessment that risks to domestic debt repayment have fallen since the new government is undertaking reforms to strengthen fiscal performance and economic conditions in the country,” S&P said in a press release.

The outlook on this rating is stable.

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