Zambia's central bank cut its policy rate for the first time in more than two years to prevent a further deterioration in the economy that is already projected to shrink for the first time in more than 20 years.

Fitch Ratings has downgraded Zambia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CC' from 'CCC'.

A significant overshooting of the fiscal deficit in 2019 highlights the Zambian government's difficulties in reining in debt accumulation, Fitch Ratings says. Already high debt levels will remain a key vulnerability, even if recently announced measures are effective in slowing the pace of further debt accumulation.

Fitch Ratings has affirmed Zambia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'CCC'.