S&P downgrades Zambia

S&P said it lowered its long-term foreign and local currency sovereign credit ratings on Zambia to B- from B.

The outlook is stable.

The agency affirmed the B short-term foreign and local currency sovereign credit ratings.

S&P also lowered the transfer and convertibility assessment on Zambia to B- from B.

“The downgrade reflects Zambia's higher fiscal deficits and faster debt accumulation than we had previously expected,” the agency said in a news release.

“The Zambian government revised its fiscal deficits and debt burden in June 2018 to account for higher capital expenditures than it had previously recorded. The corrections resulted in a materially weaker 2017 general government deficit of 7.6% of GDP, up from our previous estimate of 6%.”

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