Standard & Poor(S&P) Global Rating agency has revised Kenya’s outlook to ‘negative’ from ‘stable’, citing that the coronavirus pandemic will slow the country’s GDP growth significantly in 2020 and weigh on its already weak public finances.
The US-based Standard and Poor rating agency now joins Fitch and Moody’s which have also given Kenya a negative outlook.
“Although external financial support, including from the International Monetary Fund (IMF), will help fund Kenya’s twin fiscal and external deficits in 2020, external debt will rise sharply in 2020 and remain high in 2020-2023,” the rating agency said.
S&P Global Ratings also affirmed Kenya’s rating at B+/B, citing deteriorating fiscal and external outlook and higher debt and interest burdens as the main reason for the revision.
It expects that the negative economic fallout of the pandemic will drive real GDP growth down to 1% in 2020, followed by a rebound to 4% in 2021.
Moody’s credit rating for Kenya was last set at B2 with negative outlook. Similarly, Fitch’s credit rating for Kenya was last reported at B+ with negative outlook.