Moody’s changes Kenya view to negative

Moody's Investors Service said it changed the outlook for the government of Kenya to negative from ratings under review and confirmed its B3 long-term foreign-currency and local-currency issuer ratings and senior unsecured debt ratings, concluding the review for downgrade that it started on May 12.

“The negative outlook reflects the balance of risks remains to the downside. These downside risks relate primarily to liquidity risk and elevated refinancing needs against limited external financing options and reliance on expensive domestic financing of the fiscal deficit. The government will face substantial external amortizations even after the 2024 eurobond maturity, in addition to the ongoing material deficit.

“As a result, the sovereign's credit standing critically depends on its ability to finance its fiscal deficit through domestic funding sources and to continue to deliver on reform progress and maintain access to IMF and multilateral funding,” the agency said in a press release.

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