Moody's Investors Service has today upgraded the long-term issuer and senior unsecured debt ratings of the Government of Senegal to Ba3 from B1 and changed the outlook to stable from positive. Moody's also affirmed the short-term issuer ratings at Not Prime.
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The key drivers supporting the upgrade to Ba3 are:
1) The higher economic growth potential driven by government-led upgrades to energy and transport infrastructures as well as structural reforms.
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2) Slow but continuous fiscal consolidation that has been concomitant to enhancements in the budget structure with increased government capital spending and revenue intake.
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3) Government debt metrics broadly in line with Ba3-rated sovereigns, with high debt affordability and limited foreign exchange risk against the backdrop of higher debt burden.
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All Senegal's long-term foreign and local currency bond and bank deposit country ceilings remain unchanged at Baa1.
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