Market split over Africa credit risk amid domino downgrades

By Mariam Meskin
09 Sep 2020

The coronavirus pandemic has ramped up African sovereigns’ need to spend, resulting in a wave of credit rating downgrades. But market participants are split over the perception of credit risk in the region and how that will affect future issuance.

According to Dealogic, only two African sovereigns have tapped international bond markets this year — Egypt and Ghana. That does not mean the region is not feeling the impact of the coronavirus pandemic. Instead, governments have turned to the IMF and multilateral development banks, such as African Development Bank, for ...

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