S&P: Benin view negative

Standard & Poor's said it revised its outlook on the Republic of Benin to negative from stable.

At the same time, the agency affirmed the B/B long- and short-term sovereign credit ratings on the country. The transfer and convertibility assessment is BBB-.

The agency said the transfer and convertibility assessment reflects its view of the likelihood that the Central Bank of West African States would restrict access to foreign exchange needed for debt service.

The ratings on Benin are constrained by Benin's low per capita income, narrow economic base and weak net external position, S&P said. Furthermore, the agency said there is a lack of social consensus and political leadership to back much-needed reforms supporting tax collection, business climate and governance in key economic sectors such as the cotton sector and port activity.

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