Posted 11/2/2023, 7:27:00 PM
Fitch Downgrades Ethiopia's Credit Rating to CC Over Rising Default Risk
- Fitch downgraded Ethiopia's credit rating to CC from CCC- due to rising default risk
- The CC rating indicates Ethiopia is at imminent risk of defaulting on debt
- Ethiopia has significant external financing gaps and declining foreign currency reserves
- Delays in Common Framework debt relief and IMF bailout have exacerbated Ethiopia's liquidity crisis
- Fitch expects bilateral liquidity relief to be insufficient without financing from institutions like the IMF