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Fitch upgrades Republic of Congo’s local-currency rating on lower refinancing risks

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Fitch upgraded the Republic of Congo’s long-term local-currency rating

Global ratings agency Fitch on Friday upgraded the Republic of Congo’s long-term local-currency rating to “CCC+” from “CCC” and affirmed its foreign-currency rating, citing improved regional ‌financing conditions and a smoother debt repayment profile.

 

The move comes as Brazzaville, under President Denis Sassou Nguesso, has been working to consolidate peace and diversify the ⁠economy.

 

Nguesso won a tightly controlled election in March, securing more than 94% of the vote to extend his nearly 42 years in power.

 

Fitch said the rating is supported by reduced near-term rollover risks, improving growth prospects driven by oil and gas sector expansion, as ‌well ⁠as steadily declining government debt and fiscal surpluses.

 

The agency expects government debt to fall to 80.9% of gross domestic product in 2026 from 92.1% at the ⁠end of 2025, supported by fiscal surpluses and strong nominal growth.

 

However, the agency held the country in ⁠junk territory, citing weak public financial management, high oil dependence and recurrent arrears ⁠as continuing constraints on the rating.

 

Fitch affirmed the country’s long-term foreign-currency rating at “CCC+”.

 

–Reuters–