Fitch Rates Kenya Stable

Credit rating agency Fitch has revised the outlook on Kenya’s long-term foreign and local-currency default rating to stable from negative and affirmed a rating of B+. The revision is based on Fitch’s assessment that Kenya’s debt–currently at 52% of GDP–trajectory will stabilize at around 59% but it will be balanced with an expected GDP growth in the year, AllAfrica reported. The rating agency expects a narrowing of the fiscal deficit and the fiscal consolidation path will help steady public debt levels. Genghis Capital Analyst Churchill Ogutu says the stable rating plus strong macroeconomic stability will help treasury attract investors to a proposed Sh200 billion ($1.98 billion) eurobond paper set to be issued in the first quarter of 2018. “The rating will be seen favorably by investors just ahead of the eurobond roadshow (in the US and UK). GDP is expected to rebound this year from 2017, inflation seems to be within target levels so investors see things looking up for Kenya,” said Ogutu.