S&P downgrades Burkina Faso

Standard & Poor's said it lowered its long-term foreign and local credit ratings on Burkina Faso to B- from B.

At the same time, the agency affirmed the B short-term sovereign credit ratings.

The outlook is stable. The long-term ratings were removed from CreditWatch with negative implications where they were placed on Nov. 3.

The transfer and convertibility assessment is BBB-, as for all members of the West African Economic And Monetary Union.

S&P said the downgrade reflects its view that Burkina Faso will face heightened uncertainties during the political transition. An interim government in which military personnel occupy key positions was appointed on Nov. 23. It is expected to govern until the elections scheduled for November 2015.

S&P also revised down its GDP growth, fiscal and external forecasts based on the uncertainties businesses are facing and the expected fall in gold and cotton revenues.

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