Moody's changes Zambia outlook to negative

Moody's Investors Service said it affirmed Zambia's B1 government bond rating and changed the outlook to negative.

The agency said the key drivers for the negative outlook are Zambia’s deteriorating debt metrics, a trend of missed fiscal targets, which points to high execution risks in the current deficit-reduction plan to arrest the upward debt trajectory, and the shift of the current account into deficit, removing a key credit support that has historically suppressed external vulnerability.

The affirmation of B1 rating reflects Moody’s expectation that Zambia's credit profile will remain in line with peers at the B1 level should these credit-negative trends dissipate or reverse in the next 12 to 18 months.

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