Fitch ups Namibia view to positive

Fitch Ratings said it revised the Republic of Namibia's outlook to positive from stable.

The agency said it affirmed its long-term foreign-currency issuer default rating at BBB-, long-term local-currency issuer default rating at BBB and short-term foreign-currency issuer default rating of F3. As a member of the common monetary area, the country ceiling is affirmed at A.

The positive outlook reflects Namibia's resilience to the effects of the global economic crisis, Fitch said, and the strong prospects for the mining sector, where uranium production is expected to quadruple by 2015.

The immense growth of the uranium sector will strengthen Namibia's credit fundamentals, the agency said.

Although public debt ratios are expected to deteriorate through 2012, these will remain below rating medians, Fitch said.

Crucially, much increased uranium exports will offset balance of payment pressures from Namibia's large portfolio outflows to South Africa's capital markets, the agency said.

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