Fitch lowers Ethiopia

Fitch Ratings said it downgraded Ethiopia's long-term foreign-currency issuer default rating to CC from CCC- and affirmed the CCC- long-term local-currency IDR.

Fitch does not usually assign outlooks to sovereigns with a CCC+ rating or below.

“The downgrade of Ethiopia's LTFC IDR reflects Fitch's view that the material decline in external liquidity and significant external financing gaps have increased the likelihood of a default event. The CC rating also reflects a probable risk of a default event that may result from the government's participation in the G20 common framework (CF) debt relief initiative, given the mechanism's guiding principle of comparable treatment for official and private creditors,” Fitch said in a press release.

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