Moody's: Angola view positive

Moody's Investors Service said it changed the outlook on the Republic of Angola's Ba3 government bond ratings methodology to positive from stable, reflecting the continued strengthening of the government balance sheet and the country's robust growth prospects.

Moody's said its decision to change the outlook was prompted by the following drivers:

• The strong growth outlook underpinned by the gradual expansion of Angola's oil & gas sector, which will in turn continue to support the country's economic diversification and infrastructure development;

• Expectations that the government balance sheet will continue to strengthen, including a further substantial increase in the country's foreign-exchange reserves to provide a credible buffer against economic shocks; and

• The structural reforms that have been implemented to date as part of the recent stand-by-agreement with the IMF, although the country's very low institutional strength remains the key rating constraint.

© 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.