Sept 20 (Reuters) – Global credit ratings agency S&P raised Ethiopia’s long-term local currency rating to “CCC+” on Friday, citing assumption that domestic debt will not fall under the scope of the prospective debt restructuring.
The agency, however, kept Ethiopia’s foreign currency rating at “selective default”, saying that government remains in arrears on its commercial debt obligations, including its Eurobond.
S&P cut the foreign currently rating from “CCC/C” in December last year after the Horn-of-Africa nation defaulted on a $33 million coupon payment on its $1 billion Eurobond.
“Once a deal is agreed with the majority of Eurobond lenders, we could consider raising the foreign currency sovereign credit ratings from ‘SD’,” S&P said.
It also raised the sovereign’s local currency outlook to “stable” from “negative.”
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Reporting by Duncan Miriri and Unnamalai L; Editing by Alan Barona
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