Editor's note : The ratings agency Moody's recently downgraded Zambia's credit rating from 'B1' to 'B2' based on "sustained deterioration in fiscal and debt metrics" in the context "lower growth environment" due to weaker copper prices and electricity shortage. The outlook has been revised to stable from negative, suggesting it is unlikely to experience another downgrade over the next 12-18 months.
Moody's Investors Service has downgraded Zambia's government issuer rating to B2 from B1 . The outlook on the rating has been changed to stable from negative.
The key driver for the downgrade is our expectation of a sustained deterioration in fiscal and debt metrics that is unlikely to reverse over the course of the 3-5 year rating horizon given the challenges stemming from a lower growth environment amid an extended period of weak commodity prices, constrained copper production, and domestic electricity shortages constraining business activity.