Yet another development that does little to alleviate the country's financial difficulties. This Tuesday, as Senegal is experiencing institutional turmoil, the Bloomfield rating agency announced a revision of the outlook associated with the country's sovereign credit rating.

It has changed from "Stable" to "Negative". As for the country's sovereign rating, previously at BBB+, it has remained "unchanged for the time being, but placed under surveillance", the rating agency warned in a text seen by Seneweb.

Risks of institutional paralysis and fears about debt

 

The reasons for this deterioration are linked to recent political developments in Senegal. Bloomfield refers to a "recent deterioration of the country's political and institutional environment, marked in particular by the dismissal of the Prime Minister by the President of the Republic, an event which has led to a significant rise in political and institutional tensions."

The rating agency also believes that the election of Ousmane Sonko to the presidency of the National Assembly could increase "the risks of paralysis in the functioning of institutions and could affect the continuity of public policies as well as the capacity for economic and budgetary coordination of the State".

Increased risks to the State's ability to repay its debt

 

She points out that this development is taking place in a macroeconomic context already marked by strong liquidity constraints, increased pressure on public finances and significant refinancing needs, both domestically and internationally.

“As a result, the risks to the State’s ability to meet all of its financial obligations on time have increased significantly. In this context, the possibility of increased pressure on sovereign debt servicing, including on certain local and international obligations, cannot be ruled out in the short or medium term,” Bloomfield notes.