Nairobi - Zambia is in for a "torrid time"
in 2016, ratings agency Fitch warned on Thursday, whilst a delay
in decisive fiscal consolidation in Kenya could ultimately
result in a cut to its already junk rating.
"Zambia is in for a torrid time next year," said Carmen
Altenkirch, a sovereigns analyst, adding she thought Zambia
would be forced to return to the Eurobond markets next year,
which the country would find "challenging".
In August, Fitch affirmed Zambia at 'B' with a stable
Zambia has tapped international bond markets three times
since 2012, most recently with an 11-year, $1.25 billion bond
issued in July 2015, taking the total value of outstanding
Eurobonds to $3 billion.
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On Kenya, Altenkirch said that over the medium term, fiscal
and external risks were rising, particularly if there was no
decisive fiscal consolidation by its government.
"The longer they delay this, it clearly places additional
pressure on debt and could ultimately result in the rating being
downgraded," she said.
In July, Fitch affirmed Kenya's rating at B+, but cut its
outlook to negative from stable.
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