Fitch Ratings has affirmed Namibia's Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB-' and 'BBB' respectively.
The issue ratings on Namibia's senior unsecured foreign and local currency bonds have also been affirmed at 'BBB-' and 'BBB', respectively. The Outlooks on the Long-term IDRs are Stable. Fitch has also affirmed the Country Ceiling at 'A-', Short-term foreign currency IDR at 'F3' and National rating on the South African scale at 'AA-(zaf)'.
Namibia's 'BBB-' IDR is supported by its low public debt (26% of GDP in 2013) and the sovereign net external creditor position. Real GDP growth has remained robust despite difficult external conditions in recent years. High budget deficits recorded during 2009-2011 have highlighted its dependence on South African Customs Union (SACU) receipts (one-third of government receipts) and exposure to a few volatile commodities. Continued public and private investment should support the diversification and resilience of the economy.
