12 May 2020|Moody's Investors Service
This compendium brings together Moody’s recent research on African sovereign, banking and corporate finance credit. Featured articles include, Capital outflows will weigh on African banks’ financial metrics, Regional & Local Governments – South Africa: Coronavirus will reduce revenue collections and exert pressure on liquidity, and more.
IMF’s coronavirus debt-relief plan will benefit low-income countries, but raises prospect of defaults
15 Apr 2020|Moody's Investors Service
The IMF and the World Bank are leading an initiative to provide $500 million in financial support to the world’s poorest countries to address the impact of the global coronavirus outbreak. For the participating low-income countries, the initiative would lead to the suspension of payments or renegotiation of private-sector debt service obligations, which we would classify as debt defaults.
South Africa downgraded to Ba1 negative on weak growth, rising debt, amid deteriorating global economic outlook
27 Mar 2020|Moody's Investors Service
The South African government faces a continued deterioration in fiscal strength, structurally very weak growth and a debt burden that is set to rise even faster and to higher levels than we had previously expected. The unprecedented deterioration in the global economic outlook caused by the rapid spread of the coronavirus outbreak will further exacerbate South Africa’s challenges.
Coronavirus shock poses significant growth and fiscal challenges for African sovereigns, increases refinancing risks
26 Mar 2020|Moody's Investors Service
The coronavirus shock will significantly constrain regional growth and pressure government budgets, while the most vulnerable sovereigns will have difficulty meeting financing needs.
Financial Institutions – Africa: Coronavirus, despite central bank actions, will weigh on banks’ 2020 performance
20 Mar 2020|Moody's Investors Service
As a result of the coronavirus outbreak, we expect a slowdown in banks' credit growth as subdued consumer and investor sentiment mutes demand and stalls capital expenditure projects in the export and tourism sectors. We expect single-digit credit growth in 2020, down from our January forecast of 12%-15% credit growth.
Financial Institutions – Africa: Nigeria's regulatory forbearance to mitigate coronavirus' effects is credit negative for banks
19 Mar 2020|Moody's Investors Service
Problem loans forbearance by Nigerian banks amid the coronavirus will mask the true effect of asset quality deterioration in the country, a credit negative.
Financial Institutions – Africa: A protracted period of low oil prices is credit negative for Nigerian banks
12 Mar 2020|Moody's Investors Service
. A protracted period of low oil prices is credit negative for Nigerian banks because it will weaken their dollar liquidity while elevating asset risks.