The February 2 2018, S & P Global Ratings confirmed the long-term “CCC +” and short-term “C” debt ratings of the Democratic Republic of Congo (DR Congo). The perspective remains “stable”.
Clearly, says S & P, the country’s ability to repay its current and future financial commitments is precarious, although debt service obligations are minimal in the short term.
This fragility is linked to the persistent political stalemate in which
Democratic Republic of Congo (DR Congo) has been diving since December 2016.
In S & P’s view, the stable outlook accompanying the rating reflects both the anticipations of persistent political turmoil and the absence of commercial debt maturing later this year.
The agency could consider raising the notes of the DR Congo in the next 12 months in the following hypotheses:
• the political crisis is resolved, leading to the restoration of funding by donors and a sustained FDI flow dynamics,
• Copper and cobalt production and prices rise well above expectations, helping to significantly improve external and fiscal liquidity.
On the other hand, the rating may go down if it turns out that “the government holds commercial debt maturing during the year and we anticipate a default.”
