S&P revises view on Zambia

S&P said it revised its outlook on Zambia to negative from stable.

At the same time, the agency affirmed the B- long-term and B short-term foreign and local currency sovereign credit ratings.

The agency also maintained its transfer and convertibility assessment on Zambia at B-.

“The negative outlook reflects the risks associated with Zambia's rising external financing needs and low levels of foreign currency reserves over the next six to 12 months,” the agency said in a news release.

“We could lower the ratings if the central bank reserve levels were to fall further or external indebtedness were to rise beyond our expectations, perhaps due to a material deterioration in the government's fiscal position.”

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