S&P moves Kenya view to negative

S&P said it altered Kenya’s outlook to negative from stable and its B local- and foreign-currency ratings.

“Constrained external financing led to Kenya suspending plans to tap international capital markets in 2022, prompting the country to draw more extensively on its FX reserves to meet its external debt repayments. Our base-case scenario assumes that Kenya will meet its financing requirements for fiscal 2023 (year ending June 30), but risks remain given relatively high foreign debt service obligations in fiscal 2024 (including a $2 billion eurobond maturing in June 2024) against a backdrop of still-difficult issuance conditions,” S&P said in a press release.

The agency said the weaker outlook reflects the risks to Kenya refinancing its medium-term and foreign-currency debt.

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