Fitch rates Zambia eurobond B+

Fitch Ratings said it assigned a B+ rating to Zambia's debut dollar-denominated eurobond.

The rating, which is a senior unsecured obligation of the sovereign, is in line with Zambia's long-term foreign-currency issuer default rating of B+ and negative outlook.

The bond marks Zambia's debut on the international capital markets and has been issued under English law. It will likely to be used for infrastructure investment, as well as general budget support, Fitch said.

The rating is supported by its political stability, combined with a decade of growth of more than 6%, buoyed by macroeconomic stability, policy reforms and the emergence of a vibrant copper mining sector, the agency said.

Added to this, the country has a track record of fiscal discipline under surveillance of the International Monetary Fund, Fitch said.

The prospects for growth beyond 2012 are less certain, the agency added.

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