Moody’s upgrades Kenya’s rating to ‘outperform’ on potential credit risks By Reuters

(Reuters) – Global rating agency Moody’s (NYSE: ) upgraded Kenya’s outlook to “positive” from “negative” on Friday, citing a possible easing of risks credit and improve your ability to pay off your debts over time.

The East African country has been grappling with heavy debts and seeking new financing options since last year amid nationwide protests against tax hikes.

Domestic financing costs have started to decline during the austerity process and this could continue if the Kenyan government properly manages fiscal consolidation, opening doors for foreign financing options, the report said. .

“Due to low inflation and a stable exchange rate, there is likely to be a further reduction in the cost of borrowing at home as the easing of monetary policy in the past moves to lower the cost of longer borrowing times,” Moody’s said.

The agency added that the new International Monetary Fund program will improve Kenya’s foreign exchange while other multilateral lenders such as the World Bank will continue to be important sources of funding, although not does IMF money.

The agency has affirmed the ratings of long-term Kenyan and foreign lenders at “Caa1”, citing the existing credit risks resulting from the default of loans and high financing requirements related to financial options.