On April 24, 2015, Standard & Poor's Ratings Services affirmed its 'B' long-term and 'B' short-term sovereign credit ratings on the Republic of Cameroon. The outlook is stable.
OVERVIEW
- In our view, Cameroon's creditworthiness is constrained by weak institutions, presidential-succession risk, low per capita income, and large external financing needs.
- However, Cameroon has only modest, albeit rising, government debt, and lower inflation and exchange rate risks, thanks to its membership of the Central African Economic and Monetary Community, whose currency is pegged to the euro.
- We are therefore affirming our 'B/B' sovereign credit ratings on Cameroon.
- The stable outlook reflects our expectation that, over the next 12 months, Cameroon's institutions will not improve substantially, and that fiscal and external deficits will persist. However, we also anticipate continued monetary stability and continued low, although rising, government and external debt.
