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Fitch Affirms Angola at ‘BB-‘ And Says Outlook Stable

Fitch Affirms Angola at ‘BB-‘ And Says Outlook Stable

From Reuters

Fitch Ratings has affirmed Angola’s Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘BB-‘. The Outlooks on the Long-term IDRs are Stable. The Country Ceiling has been affirmed at ‘BB-‘ and the Short-term foreign currency IDR at ‘B’. KEY RATING DRIVERS The affirmation reflects the following factors: In 2014, Fitch expects growth to be held back by the second consecutive year of contraction in the oil sector. Oil output is expected to recover in 2H14, due to the new oil field (CLOV) coming on stream. Oil production averaged 1.65mn b/d in 1H14, against 1.74mn in 2013 and below the average production of 1.9mn b/d reached in 2008. Fitch expects GDP growth of 4.2 percent for 2014, down from 6.8 percent in 2013. This would also represent a sharp slowdown from the average 10 percent growth over the past decade that was supported by the country’s commitment to macroeconomic reform and prudent policies.

 

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