Moody’s Upgrades Congo Outlook to Positive on IMF Hopes, Oil Gains
By Aboki Forex —
Moody’s has revised the Republic of Congo’s credit outlook from stable to positive. The global ratings agency said on Wednesday that renewed access to international capital markets and a potential IMF programme have lowered near-term default risks.
“The positive outlook reflects RoC’s potential reversal in its credit trend after defaults recorded in the regional market in 2024 and early 2025,” Moody’s stated.
Earlier this month, Congo’s finance ministry said it requested talks with the IMF for a new financing programme. A technical mission is expected to arrive in the central African country soon. In an April assessment, the IMF said Congo’s economic performance and outlook remained fragile.
Moody’s noted that higher oil prices and planned increases in oil and gas production provide an upside to growth and fiscal revenue. This could strengthen debt servicing capacity.
However, the agency kept Congo’s sovereign rating at Caa2, still deep in junk territory. It cited the country’s heavy debt burden, persistent external arrears to official creditors, and domestic arrears to service and goods providers. Moody’s also pointed to a long standing record of weak fiscal governance.