S&P upgrades Congo

S&P said it raised the Republic of Congo’s foreign currency sovereign credit ratings to CCC+/C from SD/D and affirmed the B-/B long- and short-term local currency sovereign credit ratings.

The outlook is stable.

“The upgrade follows a U.S. court ruling that cleared the Republic of Congo's trustee to make previously blocked payments on Congo's 2029 Eurobond. We consider that the risk of nonpayment of principal and interest on the Eurobond over the next 12 months has abated, “the agency said in a news release.

“We rate the Republic of Congo lower than before the default, because we consider the country to be particularly vulnerable to legal risks related to state arrears, while the government's administrative capacity to make timely payment on debt remains low in our view.”

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