Fitch: Zambia view to negative

Fitch Ratings said it revised the outlook on Zambia to negative from stable.

The agency also said affirmed Zambia's long-term foreign- and local-currency issuer default ratings at B+, along with its short-term issuer default rating at B and country ceiling at BB-.

The outlook revision reflects concerns about some of the government's recent actions and announcements, which bring into question the direction of economic policy, Fitch said.

The recent decision to reverse a privatization deal without compensating the investing parties could undermine property rights, while planned reforms of the mining and banking sectors could risk unintended consequences in terms of their potential impact on investment and growth, the agency said.

A further concern surrounds recent news that the Central Bank will significantly increase the minimum capital requirements for the banking sector, Fitch said.

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