SLIDES: Sub-Saharan Africa: Emerging From COVID-19?

Key sovereign takeaways: The majority of our rating actions in Sub-Saharan Africa has been negative due to the impact of COVID-19. We expect real GDP growth to contract an average 1% in the Sub-Saharan countries we rate due to the COVID-19 pandemic. Key takeaways for banks: Central banks across Africa have proactively supported banks operating in the region by swiftly cutting interest rates and injecting liquidity. Loan growth will remain subdued as banks will face higher nonperforming loans because of recessionary conditions. Regulatory forbearance could delay recognition of NPLs and will lead inevitably to higher credit losses.

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