Burkina Faso Long-Term Ratings Lowered To 'B-' On Rising Institutional And Economic Risks; Outlook Stable

OVERVIEW On Nov. 23, 2014, an interim government in which military personnel occupy key positions was appointed to govern Burkina Faso until the elections scheduled for November 2015. We have revised our GDP, fiscal, and external forecasts due to the challenges and uncertainty the government and the business community face. Future donor support is unclear and gold and cotton revenues are predicted to fall. We are therefore lowering the long-term foreign and local currency ratings on Burkina Faso to 'B-' from 'B' and removing the ratings from CreditWatch negative. The stable outlook reflects our view that domestic armed conflict is unlikely to erupt in Burkina Faso and that debt servicing operations will continue during the political transition. RATING ACTION On

...OVERVIEW + On Nov. 23, 2014, an interim government in which military personnel occupy key positions was appointed to govern Burkina Faso until the elections scheduled for November 2015. + We have revised our GDP, fiscal, and external forecasts due to the challenges and uncertainty the government and the business community face. Future donor support is unclear and gold and cotton revenues are predicted to fall. + We are therefore lowering the long-term foreign and local currency ratings on Burkina Faso to 'B-' from 'B' and removing the ratings from CreditWatch negative. + The stable outlook reflects our view that domestic armed conflict is unlikely to erupt in Burkina Faso and that debt servicing operations will continue during the political transition. RATING ACTION On Dec. 5, 2014, Standard & Poor's Ratings Services lowered its long-term foreign and local credit ratings on Burkina Faso to 'B-' from 'B'. At the same time, we affirmed the 'B' short-term sovereign credit ratings. The outlook...

Ratings Action