Moody's Investors Service has today downgraded the Republic of the Congo's (ROC) issuer rating to B1 from Ba3 and placed the B1 rating under review for further downgrade.
The downgrade reflects the severe deterioration in the government balance sheet caused by the significant fall in oil prices, which Moody's expects to remain low for several years. The purpose of the review for further downgrade is to allow Moody's to assess the government's ability to mitigate any further negative impact of the lower oil price on ROC's credit standing.
Concurrently, Moody's has lowered ROC's country and deposit ceilings to Ba1 from Baa3. The rating downgrade drove the change in ceilings.
Moody's expects to complete the review within two months.
