S&P downgrades Senegal on debt fears
The rating decision drops the West African nation deeper into junk territory and underscores its vulnerability.
S&P Global Ratings has downgraded Senegal's long-term foreign currency rating, citing a high likelihood of the country defaulting on its debt following an agreement reached with the International Monetary Fund for a $2.2 billion loan. This downgrade pushes the West African nation further into junk territory, highlighting its vulnerability given the government's revelation of undisclosed debt from a previous administration.
Disagreements over resolving the debt crisis have sparked a political crisis, leading to the dissolution of an alliance between prominent government figures that came to power in 2024. President Bassirou Diomaye Faye expressed openness to debt restructuring, a stance opposed by his previous Prime Minister Ousmane Sonko. The rift culminated in Faye dismissing Sonko and dissolving his government before appointing new ministers.
Sonko, now the influential parliamentary speaker, has recently softened his opposition to debt restructuring.
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