Moody’s downgrades Ethiopia

Moody’s Investors Service said it downgraded the long-term issuer and senior unsecured ratings of the government of Ethiopia to B2 from B1 and placed the ratings on review for further downgrade.

“The downgrade to B2 reflects heightened external and government liquidity risks further aggravated by the coronavirus outbreak which has severely hit the economy’s foreign currency receipts, raised the government’s spending needs and curtailed its financing options. Ethiopia is more exposed to these shocks than many peers due to its high ratio of external public sector debt to foreign exchange reserves,” Moody’s said in a press release.

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