S&P cuts Ethiopia

S&P said it lowered its long-term foreign- and local-currency sovereign credit ratings on Ethiopia to CCC from CCC+.

“The recent escalation of tensions that started in the Tigray region in November 2020 is adding significant uncertainty to the policy environment and pressuring Ethiopia's already-strained external liquidity position. Originally contained within Tigray, the conflict between the federal forces and the Tigray People's Liberation Front (TPLF) has since expanded to the adjoining regions of Afar and Amhara, disrupting strategic overland supply routes linking the capital, Addis Ababa, to the port of Djibouti,” S&P said in a press release.

The government declared a nationwide state of emergency on Nov. 2.

The outlook is negative.

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