Fitch maintains B rating for Angola, foresees 2.5% growth in 2019
Credit rating agency Fitch has maintained Angola's rating at B, anticipating a 1.1% recession in 2018 and a 2.5% growth this year, based on the increase of oil and gas.
Rating agency Fitch has maintained Angola’s rating at B, anticipating a 1.1% recession in 2018 and a 2.5% growth this year, based on the increase of oil and gas.
“The rating at level B reflects the decline in external and budgetary reserves, the high weight of public debt and the frequent low revisions of the gross domestic product, all of which weigh heavily against substantial revenues in foreign currency due to the production of hydrocarbons, the government’s ability to make significant budgetary adjustments and the recent agreement with the International Monetary Fund (IMF),” Fitch said.
In the rating review, which was maintained at B, which is below the level of investment recommendation or so-called ‘junk’, with a stable outlook, Fitch’s analysts anticipate an economic recession of 1.1% last year and a growth of 2.5% this year, with a base scenario of forecasts pointing to a “moderate growth of the non-oil sector due to the effects of the increase in foreign currency liquidity” and up to a 3% growth in the medium term.
