S&P downgrades Angola to B

Standard & Poor's said it lowered its long-term foreign and local sovereign credit ratings on the Republic of Angola to B from B+ and affirmed its short-term foreign and local sovereign credit ratings at B.

The outlook is stable.

S&P said the downgrade reflects its view that lower-than-expected average Brent oil price assumptions will impair projections for Angola's external flows and stocks, government debt stocks and the pace of economic growth given the country's dependence on the oil sector.

The agency now assumes an average Brent oil price of $40 per barrel (/bbl) in 2016, $45/bbl in 2017, and $50/bbl in 2018 and beyond, versus its previous expectation of $55, $65, and $70, respectively.

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