Economic news

Fitch downgrades Ethiopia on rising default risk

2023.11.02 16:05


© Reuters. A general view of the skyline of Addis Ababa, Ethiopia November 3, 2021. REUTERS/Tiksa Negeri/ File photo

JOHANNESBURG/LONDON (Reuters) – Fitch downgraded Ethiopia deeper into junk territory on Thursday to CC from CCC-, citing gaps in the country’s external financing that it said increased its likelihood of a default.

Ratings in the CC bracket are seen as at imminent risk of default.

Fitch cut the rating for the country’s foreign currency debt, also citing the “probable risk of a default” as it pursues debt relief under the G20’s “Common Framework” agreement.

“The material decline in external liquidity and significant external financing gaps have increased the likelihood of a default event,” the ratings agency said in a statement.

Africa’s second most populous country has struggled with debt, which government figures pegged at $28.2 billion at the end of March, following a punishing two-year civil war that ended last year.

It requested a debt restructuring in early 2021 under the Common Framework deal set up during the COVID-19 pandemic to help low-income countries navigate debt crises.

Fitch said that delays to that Common Framework process, which includes China, and slow movement on a requested bailout from the International Monetary Fund, meant the country was desperately short of cash.

“Fitch expects bilateral liquidity relief to be insufficient to address the large financing gaps and improve debt sustainability in the medium term, in the absence of renewed financing from international financial institutions,” it said.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,539.65 0.56%
ethereum
Ethereum (ETH) $ 2,291.39 1.74%
tether
Tether (USDT) $ 0.999348 0.05%
xrp
XRP (XRP) $ 2.19 0.26%
bnb
BNB (BNB) $ 604.50 1.26%
solana
Solana (SOL) $ 137.00 1.36%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.206139 1.21%
cardano
Cardano (ADA) $ 0.643579 0.50%
staked-ether
Lido Staked Ether (STETH) $ 2,286.83 1.84%
tron
TRON (TRX) $ 0.227485 0.00%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,417.62 0.55%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,731.12 2.02%
chainlink
Chainlink (LINK) $ 15.11 1.12%
litecoin
Litecoin (LTC) $ 126.36 0.15%
avalanche-2
Avalanche (AVAX) $ 22.44 2.82%
stellar
Stellar (XLM) $ 0.281998 1.59%
sui
Sui (SUI) $ 2.79 3.35%
leo-token
LEO Token (LEO) $ 9.22 1.88%
the-open-network
Toncoin (TON) $ 3.40 2.56%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 0.18%
hedera-hashgraph
Hedera (HBAR) $ 0.199078 0.98%
usds
USDS (USDS) $ 1.00 0.03%
polkadot
Polkadot (DOT) $ 4.90 3.03%
mantra-dao
MANTRA (OM) $ 7.37 4.03%
hyperliquid
Hyperliquid (HYPE) $ 20.87 7.02%
weth
WETH (WETH) $ 2,288.95 1.87%
bitcoin-cash
Bitcoin Cash (BCH) $ 295.61 0.28%
ethena-usde
Ethena USDe (USDE) $ 0.99995 0.10%
bitget-token
Bitget Token (BGB) $ 4.11 3.50%
uniswap
Uniswap (UNI) $ 7.81 0.80%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,425.23 1.98%
monero
Monero (XMR) $ 208.33 2.12%
whitebit
WhiteBIT Coin (WBT) $ 26.16 0.13%
near
NEAR Protocol (NEAR) $ 3.03 0.42%
aptos
Aptos (APT) $ 6.09 3.52%
pepe
Pepe (PEPE) $ 0.000008 0.78%
dai
Dai (DAI) $ 0.99992 0.03%
internet-computer
Internet Computer (ICP) $ 6.62 3.82%
ondo-finance
Ondo (ONDO) $ 0.967967 1.24%
aave
Aave (AAVE) $ 202.20 0.60%
susds
sUSDS (SUSDS) $ 1.04 0.03%
ethereum-classic
Ethereum Classic (ETC) $ 18.61 0.80%
okb
OKB (OKB) $ 46.13 1.26%
bittensor
Bittensor (TAO) $ 325.95 8.05%
gatechain-token
Gate (GT) $ 21.44 2.38%
mantle
Mantle (MNT) $ 0.75319 0.04%
official-trump
Official Trump (TRUMP) $ 12.60 3.99%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,566.66 0.55%
tokenize-xchange
Tokenize Xchange (TKX) $ 29.95 0.98%