Zambia’s outlook stable, says Moody
Global rating agnecy Moody's today assigned localand foreign-currency issuer ratings of B1 to the government of Zambia. The outlook on these ratings is stable.
The B1 ratings reflect the following key factors:
Expectation of continued rapid growth, which should support economic diversification and over time increase the country's low wealth levels.
The country's track record of political stability, which benefits its developing institutional strength.
Zambia's low albeit improved financial strength, following debt forgiveness from official creditors in 2006. At the same time, Moody's has assigned Zambia a Baa3 localcurrency country risk ceiling, which is the maximum credit rating achievable in local currency for a debt issuer domiciled in that country. Moody's has also assigned Zambia a Ba2 foreign-currency bond country ceiling and a B2 country ceiling for foreign-currency bank deposits.