Democratic Republic of Congo’s Credit Rating Raised by Moody’s

 The Democratic Republic of the Congo’s credit rating was lifted by Moody’s Investors Service amid strengthening economic and fiscal prospects since the establishment of a program with the International Monetary Fund.

The company upgraded the country by one notch to B3, the sixth lowest score and on par with Nigeria and Angola. Moody’s changed the outlook to stable from positive, according to a Friday statement.
Congo’s program with the IMF started in July 2021 has supported institutional improvements that have led to a better economic outlook, Moody’s said. The country’s external position is also strengthening, evidenced by the accumulation of foreign-exchange reserves.
“Institutional improvements, in particular in public finance management including tax administration and the strengthening of the monetary policy framework, represent a key driver of the upgrade,” analyst Elisa Parisi-Capone wrote.
“Overall, budget credibility has been enhanced as well as cash management.”
Moody’s expects Congo’s government revenues to reach 15.4% of GDP in 2022, three years in advance of the objective set at the beginning of the IMF program. The firm expects that the authorities will continue to strengthen the country’s fiscal policy framework as well as improving transparency.
S&P Global Ratings scores the nation as B-, the equivalent to Moody’s revised rating, with a stable outlook.


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