Fitch affirms Cape Verde

Fitch Ratings said it has affirmed Cape Verde's ratings at long-term foreign currency B+ and local currency BB-.

The outlook on both ratings is stable, and the country ceiling is affirmed at B+.

The long-term foreign currency rating is underpinned by the progress Cape Verde has made in reforming its economy, reducing its fiscal imbalances and its public external debt and replenishing its international reserves, Fitch said.

It also is supported by the political stability of the country, which is key in attracting large foreign direct investment inflows and developing a flourishing tourism industry, Fitch said.

The ratings, however, also take into account Cape Verde's structurally large current account deficit and relatively high external debt, according to Fitch.

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