#JustIn: Fitch affirms Namibia’s junk status
Fitch Ratings has affirmed government’s debt in foreign currencies, excluding the rand, at two notches below investment status.
The global rating agency affirmed Namibia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook.
Fitch estimates general government debt rose to 69.8% of gross domestic product (GDP) at end of the financial year 2022/23 from 56% of GDP at end of the 2019/20 financial year, well above the estimated 'BB' median of 55.6% of GDP.
Fitch said the elevated debt level is a result of the pandemic-related economic contraction and fiscal response.
“Fitch forecasts that the rigid fiscal structure, rising interest costs, and increasing social spending will lead to a rise in government debt to 72% of GDP by FY24/25 before stabilising around this level over the medium term,” its said.
The global rating agency affirmed Namibia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook.
Fitch estimates general government debt rose to 69.8% of gross domestic product (GDP) at end of the financial year 2022/23 from 56% of GDP at end of the 2019/20 financial year, well above the estimated 'BB' median of 55.6% of GDP.
Fitch said the elevated debt level is a result of the pandemic-related economic contraction and fiscal response.
“Fitch forecasts that the rigid fiscal structure, rising interest costs, and increasing social spending will lead to a rise in government debt to 72% of GDP by FY24/25 before stabilising around this level over the medium term,” its said.
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