Moody’s eyes Ethiopia for downgrade

Moody's Investors Service said it placed the government of Ethiopia's B2 long-term issuer and senior unsecured ratings on review for downgrade.

The review reflects Moody's conclusion that the government's commitment, as part of its entry into the G20 common framework, to sign a memorandum of understanding that requires it to engage with private creditors raises the risk they will incur losses, the agency said.

“It is increasingly clear that, in contrast to the approach taken last year under the Debt Service Suspension Initiative (DSSI), official sector lenders are intent on upholding the principle of comparable treatment of official and private-sector lenders. While that principle may not be enforced in all cases, the decision on whether to do so will ultimately rest with official sector lenders,” Moody’s said in a press release.

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