Moody’s might downgrade Kenya

Moody's Investors Service said it placed the B1 long-term issuer rating of Kenya on review for downgrade.

The agency said it expects that Kenya's government debt burden, which has risen to 56.4% of GDP in June, up from 40.5% five years ago, will continue to rise due to persistently high primary deficits and borrowing costs.

“Pressures on the government primary balance, which posted a deficit of 5.3% of GDP in the latest fiscal year ending June, come from elevated development spending and weak revenue performance,” Moody’s said in a news release.

“Unless a decisive policy response is introduced, the upward trajectory in government debt will see debt-to-GDP surpass the 60% mark by June 2018.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.