Moody’s Ratings announced potential losses for private creditors in Ethiopia due to ongoing debt restructuring under the G-20 Common Framework. Although no immediate rating changes are indicated, the lengthy process may lead to increased losses. Progress has been made with the IMF, yet an agreement with creditors remains elusive, exacerbated by a missed Eurobond payment and a rejected proposed haircut.
On Friday, Moody’s Ratings announced the findings of its latest credit rating review for Ethiopia, indicating anticipated losses for private creditors due to the government’s debt restructuring efforts under the G-20 Common Framework (CF). The agency has noted that the debt restructuring process may result in more severe losses for private creditors than what is currently represented in Ethiopia’s rating. Although no immediate rating changes are expected, this assessment follows recent reviews conducted on March 11.
Moody’s assessment highlights the ongoing challenges Ethiopia faces in its debt restructuring endeavors, particularly the potential for losses among private creditors. While there have been steps toward economic reform, achieving a successful agreement with creditors remains critical. The outcomes of these negotiations will be pivotal in determining Ethiopia’s economic outlook and investor confidence in the future.
Original Source: shega.co
