S&P changes Angola view to negative

S&P said it revised its outlook on the Republic of Angola to negative from stable and affirmed the B/B long and short-term foreign and local sovereign credit ratings.

The outlook revision primarily reflects Angola's weakening economy, exhibited by a slower pace of economic growth than previously expected, the agency said.

The non-oil sector, which contributes around 60% to GDP – and which S&P expected to drive a higher pace of economic growth – has faced a sharper slowdown as import dependent industries, such as construction and retail face foreign currency supply constraints.

Government capital expenditure, which contributes significantly to growth, has also been cut as part of a fiscal consolidation plan, the agency said.

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