Moody's Investors Service has today placed the Republic of Gabon's Ba3 government bond and issuer ratings on review for downgrade.
The purpose of Moody's ratings review is to assess the extent of the impact of the further sharp fall in oil prices, which Moody's expects to remain low for several years, on the Republic of Gabon's government balance sheet in the coming years. As part of the review, Moody's will in particular assess the government's financing strategy in the years to come and the impact it has for the country's liquidity risk. The review for downgrade will also assess the credit support offered by the Republic of Gabon's membership of the franc Zone, a monetary union whose currency is pegged against the euro with a guarantee from France's fiscal authority, during this period of depressed oil prices.
Moody's expects to complete the review within two months.
