SP pessimistic for the evolution of the note from Angola – Boursorama

The rating agency Global Ratings SP (formerly Standard & Poor’s) Friday lowered to negative from stable the prospect of changing debt ratings of Angola, due to the weakening economy the country suffers from weak oil prices.

lowering the outlook means that the agency might have to degrade the rating of the country, set to “B” short for debt and long-term, within 6 to 24 months.

this decision is mainly “the weakening of the Angolan economy, illustrated by a lower growth rate this year with our expectations,” says SP Global Ratings in a statement.

the agency mentions in particular “difficulties of the non-oil private sector to source foreign currency”, hampering imports of raw materials and goods for sectors which provide greatly abroad, such as construction and distribution.

in addition, government spending was reduced as part of an austerity plan.

however, the oil sector should benefit from a rise in crude oil production in the coming years from 1.8 million barrels per day (mbd) to 1.9 mbd in 2018, which will boost the GDP growth. After bottoming at 1% this year, it will rebound to 3.7% on average from 2017 to 2019, provides SP.

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