Guests follow proceedings during a briefing by Moody’s Investor services at a Nairobi hotel in July. PHOTO | SALATON NJAU 
Moody's Investors Service has completed the periodic review of
its Kenya credit rating and is expected to release its report any time.
However, the global rating agency said that it could not guarantee the timing of giving a new credit rating.
“Moody's
has now completed the periodic review of a group of issuers that
includes Kenya and may include related ratings. The review did not
involve a rating committee, and this publication does not announce a
credit rating action and is not an indication of whether or not a credit
rating action is likely in the near future,” it said in a statement.
The
agency, however reiterated that Kenya still held an issuer rating of B2
that is supported by its "moderate" economic strength, which reflects
the relative diversification of the economy and high growth rates,
despite low wealth levels.
Kenya is currently globally
classified as a low middle-income country, but nearly 40 percent of its
population live below the poverty line
About 20 percent suffer food scarcity, meaning that a
household’s total income cannot buy them enough food. However, the
economic growth rate has averaged above five percent in the past decade
or so, though significantly below the Vision 2030 target of 10 percent.
The
rating is also an indication of "low" institutional strength reflecting
weak policy effectiveness and credibility, weak rule of law and
elevated corruption, only partially mitigated by particularly strong
statistical transparency.
“[It] has "Very Low" fiscal
strength highlighting the rapid increase in the government's debt burden
and poor revenue collection performance and "Moderate" susceptibility
to event risk predominantly stemming from government liquidity risk, due
to elevated financing needs,” Moody’s said.
No comments :
Post a Comment