Fitch maintains the note “B” of the Ivory Coast – Jeune Afrique

The rating agency Fitch maintained a grade” B ” assigned to sovereign issues of Côte d’Ivoire, with favorable prospects. And this despite the economic growth in 2014 slightly lower than expected by the authorities.

The rating agency Fitch Ratings has maintained the note “B” assigned to sovereign issuance of long maturity of the Coast Ivory in local and foreign currency, with positive outlook

Six months after the issuance of its first Eurobond in international markets, Ivory Coast retains a quality credit intact. – according UK agency – although the rating of Abidjan qualifies bonds called “speculative” and be below those of several countries in the region such as Rwanda, Congo – Brazzaville and Kenya rated “B + “and Gabon and Nigeria (” BB – “)

& gt;. & gt; & gt; & gt; Read also: Fitch atribue note “B” to the Ivory Coast

Strong economic growth but slightly down

In this new assessment, published January 9, Fitch notes as positive aspects chosen for this notation: strong economic growth of the country, political and macroeconomic stability continues, high investment and reforms initiated by the State

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According to estimates by the British agency, the GDP of Ivory Coast grew 8.5% in 2014, 50 basis points less than 9% forecast by Fitch in July and well below the 10% announced by the Ivorian authorities throughout the past year. It is even lower than the growth recorded in 2013 (9.2% according to Fitch).

This performance remains higher than that of the sub-region during the past year, estimated between 4.8 and 5.1% according to international institutions. Fitch expects maintaining these intermediate outcomes (8.5% in 2015, 7.5% from 2017).

National Accounts

The British agency expects to see the budget deficit of the Ivory Coast increase to 3.4% of GDP this year, against 2.3% in 2014, mainly due to increased investment ( 6.2% of GDP last year to 7, 4%). The country’s debt (43% of GDP in 2014) is expected to gradually decline however, Fitch believes, due to the moderation of the primary deficit and strong economic growth.

The British agency believes further that the oil price fall will have a moderate effect on the country’s finances: positive balance of current accounts and moderately negative on budget revenue. Revenues from direct taxes on oil and gas is expected to fall to 0.6% of GDP, against 1.1% in 2014.

Despite the positive outlook which she accompanies the rating of Ivory Coast, Fitch warned that a deterioration of the political and security environment, especially around the presidential election of 2015, could lead to a deterioration of the country’s credit rating. Worsening budget deficits and current account would have a similar effect.