12 February 2018

Kenya: Fitch Rating Revises Kenya Outlook From Negative to Stable

Photo: Salaton Njau/Nation
(file photo).

Nairobi — Credit rating agency Fitch Ratings 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 percent of GDP - trajectory will stabilize at around 59 percent but it will be balanced with an expected GDP growth in the year.

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 Eurobond paper set to be issued in the first quarter of 2018.

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