Oxford Economics consultancy has noted that Standard & Poor’s (S&P) decision to maintain Angola’s credit rating at B- is a reflection of the Angolan government’s efforts to stabilize oil production and manage public expenditure.
Analysts from Oxford Economics, as reported by Lusa, view this rating as evidence of the government’s attempts to stabilize oil output, control public spending, and reduce reliance on Chinese loans secured by oil revenues.
The analysts acknowledge that despite recent declines in oil prices, which have led to currency devaluation and slow economic diversification, the rating agencies have not downgraded Angola’s sovereign credit rating.
However, they emphasize that the lack of improvement in the rating underscores the significant economic challenges Angola faces as the second-largest oil producer in sub-Saharan Africa.
“The high external financing needs and the continued vulnerability to oil price fluctuations and exchange rate shocks prevent Angola from achieving a higher rating,” the analysts conclude.
Earlier this week, S&P reaffirmed Angola’s B- rating with a stable outlook, highlighting the country’s ongoing dependence on oil and the exchange rate, despite a reduction in debt this year.
