Ethiopia: Fitch Ratings has upgraded Ethiopia’s local currency issuer default rating to ‘CCC+’ from ‘CCC-‘, driven by easing financial pressures and improved macroeconomic stability. According to Africa News Agency, the upgrade is driven by reforms by the National Bank of Ethiopia, including the adoption of a market-based exchange rate, facilitating greater economic transparency and increasing the availability of foreign exchange for imports.
The rating adjustment reflects positive changes in Ethiopia’s economic strategy, allowing for better access to global markets and improved investor confidence. The National Bank of Ethiopia’s shift towards a market-based exchange rate is expected to promote economic growth and stability by attracting foreign investments and enhancing trade dynamics.
The move to upgrade the credit rating comes amid ongoing efforts to stabilize the country’s economy, which has faced challenges due to external debt pressures and inflation. The improved rating is anticipated to help Ethiop
ia in securing more favorable borrowing terms, thereby supporting its economic recovery and development goals.