INTERNATIONAL RATING AGENCY FITCH RAISES NAMIBIA’S CREDIT RISK OUTLOOK FROM NEGATIVE TO STABLE

WINDHOEK– International credit rating agency Fitch has revised Namibia’s credit risk outlook from negative to stable and affirmed Namibia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB ‘.

It says in its latest Namibia outlook report that the country’s BB rating is weighed down by weak medium-term growth prospects and wide budget and external deficits relative to rating peers. However, this is balanced against public and net external debt ratios below the current ‘BB’ median and relatively strong governance indicators.

The revised rating took into consideration the government’s stated commitment to stabilize debt and undertake fiscal reforms, as well as signs of a modest economic recovery, Fitch said.

The rating agency added that Namibia’s Gross Domestic Product (GDP) contracted by 0.8 per cent in 2017 and the economy will recover only modestly in 2018 with the GDP now expected to rise by 0.6 per cent in 2018 (previously two per cent ) and 1.8 per cent in 2019 (previously three per cent).

This growth is being driven by the pick-up in mining and other tradable sectors amid subdued domestic demand.

Source: NAM NEWS NETWORK