The rating agency Fitch has sharply lowered the credit rating of the Republic of Congo, tilted in the category of bonds with an “exceptionally high credit risk”. Explanations.
In a statement released on the evening of Thursday 28 July at the close of European financial markets, the rating agency Fitch downgraded several notches sovereign rating of long-term Congo – Brazzaville on its obligations in foreign and local currency.
high risk
Note the country went from “B” in the category of obligations called “highly speculative” to “C”, a set category several rungs below and reserved bonds with a “risk of exceptionally high credit”.
the decision comes after Brazzaville missed a June 30 payment of principal and interest of its Eurobond of $ 478 million issued in . 2007, as part of the restructuring of its commercial debt vis-à-vis the London Club (private creditors of the country)
the loan has a maturity of 22 years – it matures in June 2029 -. and has a rate of 2.5% to 4% per year over the first ten years, then 6% after the tenth year
the reasons for the expected payment has not carried out are unknown for now
grace period
Brazzaville has a 30 day grace period -. which therefore ends Saturday, July 30 – for making that payment. Otherwise, the country’s rating will be degraded in category “D”, that of the country into default.
The decision of the British agency operates out of the country score evaluation schedule . The next review of the rating of the Congo – Brazzaville was scheduled for September
. Joel Tee-Lesya
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