Government of Togo: Togos staff level agreement with the IMF will support fiscal consolidation, but significant challenges remain

Government of Togo B3 negative: Regular Update - Credit Opinion – 2024/04/23 – US$ 250.00 – ...Togo's credit profile is constrained by its narrow economic base, low levels of income as well as weak fiscal policy effectiveness. Government debt, at about 66% of GDP, limits shock absorption capacity. The recently-approved IMF programme will anchor fiscal policy, although large fiscal deficits continue to drive risks of liquidity stress and of a further deterioration of the debt trajectory. Togo's West African Economic and Monetary Union (WAEMU) membership, however, contains external and government liquidity risks to a degree, a key risk mitigant amid tighter monetary conditions....

Government of Togo B3 negative: Regular Update - Credit Opinion – 2023/11/28 – US$ 250.00 – ...Togo's credit profile is constrained by its narrow economic base, low levels of income as well as weak fiscal policy effectiveness. Government debt, at about 65% of GDP, limits shock absorption capacity. Meanwhile, the government's large fiscal deficits increase the risk of liquidity stress and a further deterioration of the country's debt trajectory going forward. Togo's West African Economic and Monetary Union (WAEMU) membership, however, contains external and government liquidity risks to a degree, a key risk mitigant amid tighter monetary conditions....

Government of Togo - B3 negative: Annual credit analysis - Issuer In-Depth – 2023/07/21 – US$ 750.00 – ...Togo's credit profile is constrained by its narrow economic base, which relies on agriculture and generates low levels of income, as well as the limited efficiency of its public administration and a high government debt burden at 64% of GDP as of 2022. High government debt levels leave the government with little capacity to weather shocks such as that triggered by the current period of high inflation and unfolding security challenges in the northern province. However, Togo's membership of the West African Economic and Monetary Union (WAEMU) is a key credit strength. The membership limits the risk of a balance-of-payments crisis because of its currency's credible peg to the euro, enabling the government to carry affordable debt with low foreign-exchange risk. WAEMU membership also provides access to local-currency funding and the pooling of foreign-exchange reserves with larger countries with stronger credit profiles. Robust economic growth, supported by reforms to strengthen the business...

Government of Togo B3 negative: Update following outlook change to negative; rating affirmation - Credit Opinion – 2023/06/02 – US$ 250.00 – ...Togo's credit profile is constrained by its lowly diversified and uncompetitive economy as well as weak fiscal policy effectiveness. Government debt, at about 64% of GDP, limits shock absorption capacity. Meanwhile, the government's fiscal policy loosening gradually increases the risk of liquidity stress and a further deterioration of the country's debt trajectory going forwards. Togo's West African Economic and Monetary Union (WAEMU) membership, however, contains external and government liquidity risks to a degree, a key risk mitigant amid tighter monetary conditions....

Moody's changes outlook to negative on Togo's B3 ratings - Rating Action – 2023/05/26 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Government of Togo B3 stable: Update following methodology update - Credit Opinion – 2022/12/01 – US$ 250.00 – ...Togo's credit profile is constrained by its lowly diversified and uncompetitive economy as well as weak policy effectiveness and fiscal management. Government debt, which we expect to stabilise at about 68% of GDP over the medium term, limits shock absorption capacity. The country's West African Economic and Monetary Union (WAEMU) membership, however, contains external and government liquidity risks to a degree, a key risk mitigant amid the current price shock....