Fitch Ratings has downgraded the Republic of Congo's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'B' from 'B+'. The Outlooks are Negative. The issue ratings on the country' senior unsecured foreign currency bonds have also been downgraded to 'B' from 'B+'. The Country Ceiling has been affirmed at 'BBB-' and the Short-term foreign currency IDR at 'B'.
KEY RATING DRIVERS
The downgrade of the Republic of Congo's IDRs reflects the depleting sovereign and external assets due to a rapid deterioration in fiscal accounts resulting from the sharp fall in oil prices since 2014 and the lack of a policy response. The Negative Outlook reflects uncertainties around the financing options for the budget deficit in the context of a high-spending 2016 budget.
