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Sunday, June 09, 2019 / 05:00PM /
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Recently, reports emerged that S&P -one of the top three global credit rating agencies- had assigned its ‘B/B’ long- and short-term foreign and local currency ratings to Togo with a stable outlook. The rating agency cited its expectation for economic growth in the country to remain resilient over the coming years on the back of key infrastructure and economic reforms. Also, it noted that Togo’s membership in the West African Economic and Monetary Union (WAEMU) provides the country with substantial buffer against external pressure and a sturdy policy anchor. Accordingly, S&P became the first global credit rating agency to assign a rating on Togo.
This rating places Togo at par with fellow African countries like Cameroon, Ghana, Nigeria, Egypt, and Rwanda, but below S/Africa, the only Economy under our coverage with a BB rating by S&P. We note that save for Morocco, with a BBB- credit rating, no other economy in Africa has an investment grade credit rating from S&P. Also, Zambia was downgraded 8 steps into junk to Caa2 by Moody’s in May 2019, as debt crisis worsens driving Eurobond yield to c. 22%.
In
our view, we believe the issuance of the credit rating on Togo is indicative of
the French-speaking W/African Nation’s willingness to join the 21 other African
countries that have issued Eurobonds in recent years. A move that contradicts
both the World Bank and IMF recommendations for African countries to cut down
on their external borrowings while building fiscal discipline.
Top African Stories
•
Nigerian petroleum regulator revokes six oil block licences: Nigeria’s
petroleum regulator has revoked six oil block licences due to “legacy debts”,
it said in a public notice on Thursday. Reuters
•
South Africa's rand falls as ANC squabbles over central bank: South
Africa’s rand fell early on Thursday to its lowest this year as a dispute
within in the ruling African National Congress over the central bank weakened
demand. Reuters
•
Kenyan President Reappoints Njoroge as Central Bank Governor: Kenyan
President Uhuru Kenyatta reappointed Patrick Njoroge for a second and final
four-year term as the East African nation’s central bank governor. Bloomberg
•
Senegal imports turbines for West Africa's first big wind farm project: Senegal started importing turbines for its first large-scale
wind farm on Thursday, the biggest such project in West Africa that will supply
nearly a sixth of the country’s power. Reuters
•
BP agrees to sell Egyptian oil assets to Dubai's Dragon Oil: BP said on
Monday it had agreed to sell its interests in the Gulf of Suez oil concessions
in Egypt to Dubai-based Dragon Oil for an undisclosed sum. Reuters
Looking Forward
Egypt
May-19
Urban CPI - June 10th
Ghana
May-19
(CPI) Inflation - June 12th
Nigeria
May-19
(CPI) Inflation - June 17th
Rwanda
May-19
(CPI) Inflation - June 10th
South
Africa
Mining
Production MoM/ YoY– June 13th
Tunisia
May-19
(CPI) Inflation - June 10th
Policy
Rate Decision - June 11th-21st
Visit African Markets in Proshare MARKETS
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