S&P Global Ratings downgraded this Friday Senegal’s long-term sovereign credit rating in foreign currencies from ‘B-‘ to ‘CCC+’, citing the country’s precarious debt position. The rating agency also placed the Senegalese government under CreditWatch with implication en développement, indicating the possibility of a further downgrade if the government fails to refinance its next commercial debt maturities. S&P justified its decision by the magnitude of the public sector’s financing needs for 270. These gross needs could reach 220,25% of GDP according to government figures, a percentage which S&P estimates higher (around 27%) based on its own forecast of a deficit of 8,1%. A burden of high debt and difficulties in financing. Senegal currently has a debt burden of 119% of GDP (as of December 2024), excluding budget arrears and an additional 9% from entities linked to the State. This level of indebtedness ranks Senegal among the most indebted sovereigns in the speculative category. The situation is exacerbated by the suspension of the IMF programme of $1.25 billion in October 2024, following the revelation of under-declared public debts and fiscal mismanagement under the previous government.
S&P Dégrade la Note de Crédit du Sénégal à “CCC+” en Raison de Vives Inquiétudes Concernant la Dette (S&P has downgraded the credit rating of Senegal to “CCC+” due to serious concerns about the level of debt)
