Addis Herald
  • Home
  • History
  • Africa
  • Travel
  • Music
  • Culture
  • Art

Culture

  • Hair salon in Addis AbabaHana Yilma Godine: Substance in Ethiopia
  • Or. 607The Ethiopian Emperor’s Manuscripts
  • 36540E1A-A477-4FDD-A4E7-2DD01514F57DEthiopian Manuscripts and Painting from the Seventeenth to the Nineteenth Century
  • 184D8D78-8168-43A0-8F33-95AAC1CE81B2The Top Ten Ethiopia’s Endemic Wild Animals
  • 68B656DE-B1F3-47D4-9F6A-198C6FA6FCA3The New Face of Addis

Business

  • China-Ethiopia-forumEthiopia’s Export to China Grows Amid Booming FDI from Chinese Companies to the Country
  • 32AAAC40-C7CF-4A10-8C4A-D63F30DC6D07As Telebirr Increases it’s Subscribers to 18 mln, It’s Mother company Ethio Telecom launches 5G network
  • 57BD9DF7-CDDD-4722-AD63-F5A0C41A11B1Recovery Period: Inside Ethiopian Airlines’ 4-Pillar Growth Strategy
  • DC89FC8D-FC0B-4547-B6E6-7D8A4540717E12 investment opportunities in Ethiopia’s packaging industry
  • 3D2D6F24-5BB6-4943-AD60-DA8E222749C2Ethiopian Airlines leases two Dash 8-400 aircraft from TrueNoord

Africa

  • Forecast Shows Wet Conditions for the Northern parts of Eastern AfricaForecast Shows Wet Conditions for the Coming Three Months in the Greater Part of East Africa: ICPAC
  • 6282560d85f540722f371ffcCan Africa replace Russia as the EU’s main source of gas?
  • Amilcar Cabral 1Claim No Easy Victories: What We Learned from Amilcar Cabral
  • 2B04558D-E562-4F0C-B0F8-36082FF2C299As Gas hold the key to Africa’s energy future , it also may Rescue Europe’s energy crisis
  • C1480A4F-9399-4DEC-8DE9-6CD659342646African entrepreneurs need to be taken seriously
39988-au_gold
February 17, 2021

Downgrading the Government of Ethiopia’s long-term credit rating by Fitch is an incorrect reflection of the country’s creditworthiness.

African Union

The African Peer Review Mechanism (APRM), a specialized entity of the African Union (AU), had a mandate to supports African countries in the area of credit rating agencies. As part of this mandate, the APRM undertakes routine reviews of rating outcomes assigned by international credit ratings agencies on African countries. The APRM has noted the downgrade of the Republic of Ethiopia’s long-term foreign currency sovereign credit rating by Fitch on the 09th of February 2021, 2-notches from B to CCC. Moody’s and S&P Global rating still has the country’s long-term credit rating on B2 and B, respectively. The newly assigned rating for Ethiopia means the country is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for it to meet its financial commitments on the obligation. The APRM raises the following observations;

1. The key driver of Ethiopia’s rating downgrade is the announcement by the government that it will be utilizing the G20’s Common Framework for Debt Treatments under the Debt Service Suspension Initiative (DSSI).

2. The assessment that this G20 debt support mechanism is still an untested mechanism and explicitly raises the risk of a default event is speculative and unobjective. From the precedence of the DSSI program, it has been clear that the G20’s debt relief programs will not be imposed on private creditors whose choice to reject the debt relief request will remain open.

3. Ethiopia only has one outstanding Eurobond and has wide number options to service both the Eurobond and other commercial debt; its risk of falling into debt distress is significantly minimal. The bulk of the country’s public external debt is official multilateral and bilateral debt that the country may most likely restructure rather than default.

Based on these factors, the APRM views the downgrade of the Government of Ethiopia’s long-term foreign currency sovereign credit rating by Fitch to CCC as an incorrect reflection of the country’s creditworthiness. The rating downgrade, in fact, counters the efforts by the G20 to assist the Government of Ethiopia and other developing countries to address the impact of the Covid-19 pandemic as it immediately leads to increase in the cost of servicing existing debt. The APRM will therefore provide technical and operational support to Ethiopia’s credit rating liaison team to engage Fitch on its newly assigned credit rating with aim of attaining a rating upgrade in future review

Africa’s Top 100 Banks 2020: Weathering the storm Ethiopia: A truly unique African country

Related Posts

Forecast Shows Wet Conditions for the Northern parts of Eastern Africa

Africa, Headlines

Forecast Shows Wet Conditions for the Coming Three Months in the Greater Part of East Africa: ICPAC

6282560d85f540722f371ffc

Africa, Headlines

Can Africa replace Russia as the EU’s main source of gas?

putin-and-lavrov-laughing-1280x720-1

Headlines

After securing Donbas and Mariupol, what will be Russia’s next move?

What It’s Like To Be A Billionaire In Ethiopia

https://youtu.be/UsczEq9RtqI
https://youtu.be/oT1LO-6OC-I

Travel

  • Ethiopia has Over 10,000 Megalithic Monuments dating Back to the 1st CenturyEthiopia has Over 10,000 Megalithic Monuments Dating Back to the 1st Century
  • ethiopia_ethiopian_wolf_35Brilliant Ethiopia: The Unique Wonder
  • F6BD7E94-BC77-4B3E-B905-7B140F12F5FDKenya Had an Elephant ‘Baby Boom’ — and Now You Can Adopt One
  • Addis_herald_omo_3910 Main Tourist Attractions Places in Africa
  • Homage to Entoto Park How the Old “Town in the Forest” is turning into a newly flowering tourist hubHomage to Entoto Park How the Old “Town in the Forest” is turning into a newly flowering tourist hub

Africa

  • Forecast Shows Wet Conditions for the Northern parts of Eastern AfricaForecast Shows Wet Conditions for the Coming Three Months in the Greater Part of East Africa: ICPAC
  • 6282560d85f540722f371ffcCan Africa replace Russia as the EU’s main source of gas?
  • Amilcar Cabral 1Claim No Easy Victories: What We Learned from Amilcar Cabral
  • 2B04558D-E562-4F0C-B0F8-36082FF2C299As Gas hold the key to Africa’s energy future , it also may Rescue Europe’s energy crisis
  • C1480A4F-9399-4DEC-8DE9-6CD659342646African entrepreneurs need to be taken seriously

Culture

  • Hair salon in Addis AbabaHana Yilma Godine: Substance in Ethiopia
  • Or. 607The Ethiopian Emperor’s Manuscripts
  • 36540E1A-A477-4FDD-A4E7-2DD01514F57DEthiopian Manuscripts and Painting from the Seventeenth to the Nineteenth Century
  • 184D8D78-8168-43A0-8F33-95AAC1CE81B2The Top Ten Ethiopia’s Endemic Wild Animals
  • 68B656DE-B1F3-47D4-9F6A-198C6FA6FCA3The New Face of Addis

Business

  • China-Ethiopia-forumEthiopia’s Export to China Grows Amid Booming FDI from Chinese Companies to the Country
  • 32AAAC40-C7CF-4A10-8C4A-D63F30DC6D07As Telebirr Increases it’s Subscribers to 18 mln, It’s Mother company Ethio Telecom launches 5G network
  • 57BD9DF7-CDDD-4722-AD63-F5A0C41A11B1Recovery Period: Inside Ethiopian Airlines’ 4-Pillar Growth Strategy
  • DC89FC8D-FC0B-4547-B6E6-7D8A4540717E12 investment opportunities in Ethiopia’s packaging industry
  • 3D2D6F24-5BB6-4943-AD60-DA8E222749C2Ethiopian Airlines leases two Dash 8-400 aircraft from TrueNoord

RSS Allfrica.com News feed

  • Africa: WHO DG Recounts Successes in War Against HIV, Malaria, Other Diseases #WHA75
  • Africa: Fix Broken Financing to Ensure a #StrongWHO – Appeal from 80 Organizations
  • Africa: Deputy Minister Mashego-Dlamini Co-Chairs the 10th Session of the South Africa - Iran Deputy Ministerial Working Group, 23 May
  • Africa: What Is Monkeypox? a Microbiologist Explains What's Known About This Smallpox Cousin
  • Africa: One Week Left to Comment On South Africa's New Labour Migration Policy
  • Africa: Tom Saintfiet Names the Gambia Squad for the Totalenergies AFCON Qualifiers
  • Africa: Togo - Ayite's Comeback for Eswatini and Cape Verde
  • Africa: India 2022 - Luvanga Nets Hat Trick As Tanzania Stun Cameroon in Yaounde
  • Africa: Cameroon - African Football Legends Celebrates Milla At 70
  • Africa: Senegal Beach Soccer Championship Starts On June 19
  • Abijitta-Shalla National Park
  • Alatish Ethiopian National Park
  • Awash National Park
  • Babille Elephant Sanctuary
  • Bahir Dar Blue Nile Millennium Park
  • Bale National Park; Ethiopia’s lesser-known Treasure
  • Bale Mountains National Park
  • Borena-Sayint National Park
  • Chebera Churchura National Park
  • Dati Wolel National park
  • Gambella National Park
  • Gambella National Park 2
  • Kafta-Sheraro National Park
  • Mago National Park
  • Maze National Park
  • Nechisar National Park, Ethiopia
  • Omo National Park 
  • The Semien Mountains
  • Yabello National Park
  • Yangudi Rassa National Park
© Addis Herald 2022
  • Contact us
en English
af Afrikaansam Amharicar Arabiczh-CN Chinese (Simplified)en Englishfr Frenchde Germanel Greekhi Hindiit Italianja Japaneseko Koreanla Latinru Russianes Spanishsu Sudanesesw Swahilisv Swedish