Research Update: Burkina Faso 'CCC+/C' Ratings Affirmed; Off Watch On Stabilizing Post-Coup Political Environment; Outlook Stable

We expect Burkina Faso and the Economic Community of West African States (ECOWAS) will reach a consensus on Burkina Faso's post-coup transition period and that the country's relationships with its main international partners will gradually normalize. That said, if any breakdown in Burkina Faso's talks with ECOWAS led to financial sanctions on the former this could hamper its ability to service its domestic debt. Burkina Faso's ongoing security and humanitarian crisis, coupled with the current inflationary environment, will likely add to post-pandemic budgetary pressures. We removed our long-term ratings on Burkina Faso from CreditWatch developing to reflect that the political environment has somewhat stabilized after the January 24 coup. We affirmed our 'CCC+/C' sovereign credit ratings. The outlook is stable.

...- We expect Burkina Faso and the Economic Community of West African States (ECOWAS) will reach a consensus on Burkina Faso's post-coup transition period and that the country's relationships with its main international partners will gradually normalize. - That said, if any breakdown in Burkina Faso's talks with ECOWAS led to financial sanctions on the former this could hamper its ability to service its domestic debt. - Burkina Faso's ongoing security and humanitarian crisis, coupled with the current inflationary environment, will likely add to post-pandemic budgetary pressures. - We removed our long-term ratings on Burkina Faso from CreditWatch developing to reflect that the political environment has somewhat stabilized after the January 24 coup. We affirmed our '###+/C' sovereign credit ratings. The outlook is stable....

Research Update