Standard & Poor's Ratings Services revised its outlook on Zambia to negative from stable , on fiscal policy shift and expected weaker external position.

At the same time, The rating agency affirmed 'B+' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Zambia.

The outlook revision reflects a more than one-in-three likelihood that the country could be downgraded over the next year, based on view that there has been a substantial shift in the government's fiscal policy.

S&P could lower the ratings if fiscal slippage occurs beyond their current expectations. The rating agency could also lower the ratings if weaker copper prices, lower copper production, a rising import bill or higher profit repatriation further weaken Zambia's external liquidity, or if the administration's policies deter foreign investment.

The outlook could be revised to stable if the government improves fiscal flexibility, if Zambia's external performance becomes less vulnerable to copper prices, or if investment in infrastructure supports consistently high growth in per capita income.

Source: S&P