Moody's Investors Service has today upgraded the long-term issuer and senior unsecured debt ratings of the Government of Senegal to Ba3 from B1 and changed the outlook to stable from positive. Moody's also affirmed the short-term issuer ratings at Not Prime.
The key drivers supporting the upgrade to Ba3 are:
1) The higher economic growth potential driven by government-led upgrades to energy and transport infrastructures as well as structural reforms.
2) Slow but continuous fiscal consolidation that has been concomitant to enhancements in the budget structure with increased government capital spending and revenue intake.
3) Government debt metrics broadly in line with Ba3-rated sovereigns, with high debt affordability and limited foreign exchange risk against the backdrop of higher debt burden.
All Senegal's long-term foreign and local currency bond and bank deposit country ceilings remain unchanged at Baa1.