Reuters 12:00 9th July 2012
S&P affirms Cape Verde ‘B+/B’ ratings; outlook stable
Cape Verde’s twin deficits (external and fiscal) have widened considerably in recent years, but in the medium term we expect these will narrow. We also believe Cape Verde will remain politically stable, relative to peers, and that real GDP growth will stay moderately strong.
— Ongoing dependence on crisis-hit European economies for trade, investment, and tourists poses risks.
— We have affirmed our long- and short-term foreign and local currency sovereign credit ratings on Cape Verde at ‘B+/B’.
— The stable outlook reflects our view that risks posed by the large general government debt stock and twin deficits are broadly balanced by economic growth prospects and still-strong donor support.
On July 9, 2012, Standard & Poor’s Ratings Services affirmed its long- and short-term foreign and local currency sovereign credit ratings on Cape Verde at ‘B+/B’. The outlook is stable.
The transfer and convertibility assessment is unchanged at ‘BB’.
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