Republic of Angola Ratings Affirmed At 'B/B'; Outlook Remains Negative

OVERVIEW We consider that Angola's economy remains weak and external and fiscal deficits still relatively high, due to slow economic growth from the relatively low oil price environment. That said, over the next two years, we expect rising oil prices will help narrow the fiscal deficits while current account deficits will stabilize at a lower level than in the past two years. Moreover, the government has sizable liquid assets for a sovereign at our 'B' rating level. We are therefore affirming our 'B/B' long- and short-term sovereign credit ratings on Angola. The negative outlook reflects our concern that Angola's currently high external and fiscal deficits might exceed our forecast expectations, especially if the government were to increase expenditures faster than

...OVERVIEW We consider that Angola's economy remains weak and external and fiscal deficits + still relatively high, due to slow economic growth from the relatively low oil price environment. That said, over the next two years, we expect rising oil prices will help narrow + the fiscal deficits while current account deficits will stabilize at a lower level than in the past two years. Moreover, the government has sizable liquid assets for a sovereign at our 'B' + rating level. We are therefore affirming our 'B/B' long- and short-term sovereign credit + ratings on Angola. The negative outlook reflects our concern that Angola's currently high external + and fiscal deficits might exceed our forecast expectations, especially if the government were to increase expenditures faster than increases in oil-related revenues. RATING ACTION On Feb. 10, 2017, S&P Global Ratings affirmed its 'B/B' long- and short-term foreign and local currency sovereign credit ratings on the Republic of Angola. The outlook...

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