Angola's B3 rating is "adequate" due to its debt burden increasing amid a sharp drop in oil prices and a "modest" outlook on the evolution of the economy, global rating agency Moody's said on Monday.
Angola’s credit profile reflects low economic strength, with modest economic perspectives in the medium term and low levels of wealth in an oil economy characterized by low levels of diversity and competitiveness, a note by Moody’s said.
The experts added in the analysis, which aims to determine if ratings attributed to several countries and African banks are adequate, that the country’s financial strength was ‘Very Low’ in part due to a rapidly rising debt during the oil shock, exceeding 75% of Gross Domestic Product in 2018.
The country’s ‘Very Low’ financial strength, the analysts went on, reflects the authorities’ weak capacity concerning government effectiveness and the ability to implement policies.
Moody’s released a series of analyses on Monday on the main African countries, including Angola, Mozambique, Nigeria, Egypt, Mauritius, Saudi Arabia, Oman and South Africa, among others.