Browsing: Ethiopia debt repayment

• In a body blow, Fitch Ratings has moved Ethiopia’s rating from “CC,” where it had been downgraded in November, to the new status of “C”.
• This adjustment reflects the agency’s deepening concerns about Ethiopia’s economic health and the rising risk of default following a missed interest payment on 11 December.
• A further severe downgrade by Fitch Ratings to ‘restricted default’ (RD) looms if Ethiopia fails to make the coupon payment within the set 14-day grace period.

Fitch Ratings agency has served Ethiopia’s economy a gut punch by further downgrading Ethiopia’s credit rating into junk territory, expressing concerns about the “increased likelihood” of default by the second most populous country in Africa.

This economic setback for Ethiopia, home to approximately 120 million people, comes as a result of the country’s failure to meet its financial obligations to creditors. Specifically, Ethiopia was unable to pay a coupon on its single …