Fitch Ratings has revised the outlook on Kenya’s Long-Term Foreign-and Local-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘B+’.
The revision reflects Fitch’s assessment that the country’s public debt/GDP trajectory will stabilize coupled with an expected GDP growth rebound in the year.
The rating agency expects a narrowing of the fiscal deficit and the fiscal consolidation path will help steady public debt/GDP levels.
The affirmation of ‘B+’ hinge on strong macroeconomic stability which will anchor medium-term growth outlook.
“We are of the view that the Fitch revision of Kenya’s outlook to stable will be a boost as the country firms up plans for an international sovereign bond issue,” said analysts at Genghis Capital.