Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
US agency assigns Tanzania higher credit rating than Kenya
MONDAY, MARCH 5, 2018 20:00
BY CONSTANT MUNDA
Global rating agency Moody’s has ranked Tanzania higher than Kenya in credit worthiness.
The US firm has assigned Tanzania a first-time debt issuer rating of B1, a notch higher than Kenya’s B2 after downgrading the latter’s on February 13 because of mounting concerns over a faster pace of new debt accumulation amid sluggish revenue.
Unlike Kenya’s stable outlook thanks to her diversified economy, Moody’s has assigned Tanzania a negative outlook due to unpredictable policy environment, which may hit investments.
That means considerable chances of Tanzania being downgraded to Kenya’s rating band for sovereign credit.
Also Read
MARKET NEWSSMEs to get cheap loans for projects
MARKET NEWSPsychiatric hospital set for Sh530m expansion
MARKET NEWSState yet to pay millers billions for subsidised flour
“Uncertainty over the regulatory environment and policy stance of the government, particularly as it relates to the mining sector, could have a long-term negative impact on the country’s growth potential and ability to attract foreign investment,” Moody’s said in a statement on Tanzania’s rating on Monday.
“Even though mining represents only a small share of GDP, the sector is an important source of government revenue and export earnings.”
READ: Treasury disputes Moody's downgrade of Kenya's rating
Kenya’s 7.25 per cent interest on 10-year tranche of $1 billion (Sh101.32 billion) was, for example, higher than Nigeria’s 7.1 per cent on a 12-year $1.25 billion (Sh126.65 billion) bond on February 15 and 6.59 per cent return that Egypt offered on 10-year tranche of its successful $4 billion auction on February 13.
The country is battling fast-maturing debt, with about Sh1 trillion projected in repayments in the next financial year from July.
That is a steep rise from Sh658.23 billion budgeted in the current year that ends in June, and the Sh435.7 billion paid in the year ended June 2017.
US agency assigns Tanzania higher credit rating than Kenya
MONDAY, MARCH 5, 2018 20:00
BY CONSTANT MUNDA
Global rating agency Moody’s has ranked Tanzania higher than Kenya in credit worthiness.
The US firm has assigned Tanzania a first-time debt issuer rating of B1, a notch higher than Kenya’s B2 after downgrading the latter’s on February 13 because of mounting concerns over a faster pace of new debt accumulation amid sluggish revenue.
Unlike Kenya’s stable outlook thanks to her diversified economy, Moody’s has assigned Tanzania a negative outlook due to unpredictable policy environment, which may hit investments.
That means considerable chances of Tanzania being downgraded to Kenya’s rating band for sovereign credit.
Also Read
MARKET NEWSSMEs to get cheap loans for projects
MARKET NEWSPsychiatric hospital set for Sh530m expansion
MARKET NEWSState yet to pay millers billions for subsidised flour
“Uncertainty over the regulatory environment and policy stance of the government, particularly as it relates to the mining sector, could have a long-term negative impact on the country’s growth potential and ability to attract foreign investment,” Moody’s said in a statement on Tanzania’s rating on Monday.
“Even though mining represents only a small share of GDP, the sector is an important source of government revenue and export earnings.”
READ: Treasury disputes Moody's downgrade of Kenya's rating
Kenya’s 7.25 per cent interest on 10-year tranche of $1 billion (Sh101.32 billion) was, for example, higher than Nigeria’s 7.1 per cent on a 12-year $1.25 billion (Sh126.65 billion) bond on February 15 and 6.59 per cent return that Egypt offered on 10-year tranche of its successful $4 billion auction on February 13.
The country is battling fast-maturing debt, with about Sh1 trillion projected in repayments in the next financial year from July.
That is a steep rise from Sh658.23 billion budgeted in the current year that ends in June, and the Sh435.7 billion paid in the year ended June 2017.
US agency assigns Tanzania higher credit rating than Kenya