Credit ratings agency S&P on Friday downgraded Senegal’s long-term sovereign credit rating to “CCC+” from “B-”, citing the increasingly fragile debt position of the West African nation.
The agency also placed Senegal on “CreditWatch developing,” indicating that a further downgrade is possible if the government struggles to refinance upcoming commercial debt maturities.
“Public-sector borrowing needs for 2026 are elevated, as is the level and cost of general government debt and the starting point for the budgetary deficit, making public finances precarious,” S&P said.
Senegal’s public finances have deteriorated sharply since a new administration last year uncovered previously unreported liabilities accumulated under the former government.
Those hidden debts have since ballooned to about $11 billion, plunging the country into a fiscal crisis.
The discovery prompted the International Monetary Fund to freeze its $1.8 billion programme, sending Senegal’s international bonds lower and triggering a string of downgrades from global rating agencies.
Although the government and the IMF have held several rounds of talks to resolve the debt-misreporting issue, the Fund’s mission to Dakar last week ended without an agreement on a new financing programme.
S&P previously cut Senegal’s rating to B- in July, assigning a negative outlook, while Moody’s downgraded the country to CAA1 last month.
