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Fitch Ratings: the agency confirms Gabon's' B- 'rating with a positive outlook

14/02/2023
Source : ORISHAS FINANCE
Categories: Economy/Forex

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Fitch Ratings confirmed on February 10, 2023 the default rating of long-term foreign currency (IDR) issuers from Gabon to “B-” with a positive perspective.

La note Gabon's “B-” reflects GDP higher per capita. It is also linked to a strong dependence on oil, a GFP weak history of public financial management () and liquidity pressures that have led to a new accumulation of external debt arrears. For their part, the positive outlook is the result of the expectation that expenditure control, better mobilization of non-oil revenues, and higher oil prices will improve Gabon's budgetary parameters. Also, the debt/GDP ratio will remain on a downward path while progressive reforms, including under the IMF program, will lead to a reduction in PFM risks.

Certes le pays a un environnement de prix de pétrole favorable, mais les cash management problems persist and have led to a new accumulation of external arrears (39 billion XAF; 0.3% of GDP) in 2022. Similarly, Gabon failed to obtain budgeted funding (0.7% of GDP) from the African Development Bank style="font-family: "Bookman Old Style”, “serif""> and from IMF and it failed to meet some of its commitments under the Extended Financial Mechanism (EFF) of the IMF, which delayed the third review. All of these failures limited scoring.

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