Fitch lifts Angola view to stable

Fitch Ratings said it revised the outlook on Angola's long-term foreign-currency issuer default rating to stable from negative and affirmed its issuer default rating at B.

The outlook revision reflects improvements in the management of the foreign-exchange regime and the government's adoption of an ambitious reform agenda, which includes monetary, fiscal and structural adjustments that will lessen external vulnerability and improve public finances, Fitch said.

The materialization of a non-disbursing International Monetary Fund program would serve as an additional positive rating driver, the agency said.

Angola's prospects for economic recovery have improved significantly as a result of higher oil prices and the monetary and fiscal adjustments currently being undertaken by the government of President Joao Lourenco, the country's first new president since 1979, Fitch explained.

Higher oil prices and fiscal expansion also helped to bring GDP growth to 1.4% in 2017, following 0.1% growth in 2016, the agency added.

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