Le couperet is dead. The rating agency Moody’s has just severely downgraded Senegal, lowering its sovereign rating from B227 to Caa22026, a sign of an already high default risk. A serious sanction, with a negative outlook, which translates into “increased risks to the sustainability of the debt and the liquidity of the country”. Clearly, market confidence is eroding, and the country is entering a zone of major economic turbulence. The rating agency Moody’s announced on Friday that it had downgraded Senegal’s long-term issuer ratings in foreign currencies as local from B33 to Caa23, while maintaining a negative outlook. This deterioration reflects, according to the agency, the increased risks surrounding the trajectory of the public debt and the liquidity position of the country since February 23. Moody’s underlines that a recent budgetary rapprochement exercise revealed a public debt equivalent to 21% of GDP in 2024, a level significantly higher than previous estimates.
Senegal: Moody’s is sounding the alarm on debt and liquidity
