Fitch downs Angola's evolution outlook to negative, maintains rubbish rating – Jornal Econômico

"The review of the Stability to Negative economy's outlook reflects the deterioration of debt metrics, the continued decline in foreign reserves, and a slower and slower than expected economic recovery," analysts write in the explanation supporting the stock of 'rating'.

Fitch maintains its opinion on the quality of sovereign credit in B, below the investment recommendation, ie 'junk' or 'junk', as is commonly known.

"The level of public debt has continued to increase from 80.2% of GDP in 2018 to 83.8% this year, according to our forecasts," notes Fitch, noting that this ratio is "well above the average for the countries with a 'B' rating, at 59.1%.

The debt level would be even higher if Sonangol's accounts were included, which would increase 88.8% this year, Fitch says, noting that part of this deterioration in debt metrics "is the result of depreciation of the Kwanza, despite some of the risks on the liquidity of the foreign currency are mitigated in some way by the government receiving most of its dollar revenues. "

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