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27 Feb 2019, Gergana Bencheva, EMIS Editor

S&P revises Zambia’s credit rating outlook to negative

Credit rating agency Standard & Poor's (S&P) has decided to revise Zambia's rating outlook to negative from stable, CEEMarketWatch reported. The decision was explained with the African country’s rising external financing needs and low levels of foreign currency reserves over the next six to 12 months.

The agency underlined that it would lower Zambia’s rating if its central bank’s reserves fell further or external debt increased beyond expected levels. S&P’s estimate is that the country’s external debt service would account for an average of 42% of current account receipts in 2019-2022, against 35% booked between 2016 and 2018.

Furthermore, S&P noted that the external risks for Zambia’s economy were high because of the country's dependence on copper exports, CEEMarketWatch noted. Sign in and read the full article in emis.com, and find out more about EMIS Original source: CEEMarketWatch