Ethiopia receives first sovereign rating

Ethiopia has received its first sovereign credit rating from the top global agencies, a step that opens the door for a potential debut on international capital markets and highlights the country’s profound turnround.

For many, Ethiopia is still remembered as the country that suffered a famine, described at the time in 1984, of “biblical proportions”. But for savvy investors, the country is today one of the world’s fastest growing economies, averaging growth of more than 10 per cent per year over the last decade and attracting the likes of clothing giant H&M and private equity groups.

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Moody’s on Monday joined its rivals Standard & Poor’s and Fitch in rating the country as a highly speculative destination. Moody’s put the foreign currency sovereign credit rating as “B1”, one notch above the “B” given by its rivals.

The government in Addis Ababa has not indicated when it would debut, but Hailemariam Desalegn, prime minister, said last year that the country was planning a Eurobond once it had secured a credit rating…Read More on FT.com

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