Fitch rates Namibia AAARating relative to that of SA's national rating scale Fitch's negative outlook on Namibia still lingers despite an upgrade in creditworthiness on the South African rating scale, while long-term debt remains affirmed at BBB-. Fitch Ratings has upgraded Namibia's national rating on the South African scale to AAA from AA+. Despite the upgrade, Fitch's outlook remains negative. Fitch has also upgraded Namibia's senior unsecured bonds rated on the national scale to AAA from AA+.
Fitch affirmed Namibia's long-term foreign- and local-currency issuer default ratings (IDRs) at BBB- and revised the outlook to negative on 2 September 2016.
The latest upgrade follows the downgrade of South Africa's long-term local-currency IDR to 'BB+' from 'BBB-' on 7 April 2017, Fitch said in a statement.
“Namibia's national rating is sensitive to Namibia's sovereign rating as well as South Africa's sovereign rating. A change in Fitch's assessment of either Namibia or South Africa's credit quality would result in a change in Namibia's national rating,” said Fitch.
With the possibility of a downgrade still lingering, Fitch had in the past expressed concern at the Namibian government's failure to narrow the fiscal deficit, which had led to a continued rise in the government's debt to GDP ratio that almost peaked at 45%, a deterioration in economic growth and failure to narrow the current-account deficit that had, in turn, also led to a drawdown in international reserves.
Moody's has not commented on Namibia's creditworthiness yet following the downgrade of South Africa's.
Moody's had the past affirmed Namibia at Baa3 on its rating scale, similar to that of Fitch, while its outlook for Namibia is also negative.
OGONE TLHAGE
Fitch affirmed Namibia's long-term foreign- and local-currency issuer default ratings (IDRs) at BBB- and revised the outlook to negative on 2 September 2016.
The latest upgrade follows the downgrade of South Africa's long-term local-currency IDR to 'BB+' from 'BBB-' on 7 April 2017, Fitch said in a statement.
“Namibia's national rating is sensitive to Namibia's sovereign rating as well as South Africa's sovereign rating. A change in Fitch's assessment of either Namibia or South Africa's credit quality would result in a change in Namibia's national rating,” said Fitch.
With the possibility of a downgrade still lingering, Fitch had in the past expressed concern at the Namibian government's failure to narrow the fiscal deficit, which had led to a continued rise in the government's debt to GDP ratio that almost peaked at 45%, a deterioration in economic growth and failure to narrow the current-account deficit that had, in turn, also led to a drawdown in international reserves.
Moody's has not commented on Namibia's creditworthiness yet following the downgrade of South Africa's.
Moody's had the past affirmed Namibia at Baa3 on its rating scale, similar to that of Fitch, while its outlook for Namibia is also negative.
OGONE TLHAGE