Moody's changes Gabon view to negative

Moody's Investors Service said it changed the outlook on the government of Gabon to negative from stable and affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Caa1.

“The decision to change the outlook to negative reflects the heightened political and government liquidity risks stemming from the military intervention that took place on Aug. 30. Amid a fluid situation, Moody's expects the suspension of the constitutional order and increased political uncertainty to weigh on the economic outlook and financial support from the international community.

“While not Moody's base case, the imposition of any regional or international sanctions targeting cross-border financial transactions or access to the capital markets would markedly heighten liquidity risk for the government the longer they remain in place,” the agency said in a press release.

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