Moody's Investors Service ("Moody's") has today affirmed Namibia's Baa3 government bond and issuer ratings with a stable outlook.
The key factors for affirming the Baa3 rating and maintaining the stable outlook are:
- Namibia's fiscal resilience, supported by (i) low although rising public debt (estimated at 32.9% of GDP for 2015/16 fiscal year), (ii) a track record of sound fiscal policies that balance counter-cyclical stance with fiscal adjustments over the medium term, and (iii) Moody's expectation that the government will consolidate its public finances in the coming years and rebuild policy buffers.
- Despite low commodity prices, solid growth prospects, thanks to the country's relatively diversified production base and the coming on stream of new capacity in the mining industry.
- The country's credible and rule-based fiscal policy as well as a monetary policy that is vigilant and forward looking even though constrained by participation in the common monetary area with South Africa, Swaziland and Lesotho.
Namibia's local currency bond and bank deposit ceilings at A1, foreign currency bank deposit ceiling Baa3, and foreign currency bond ceiling at A3, remain unchanged.
