"The decision to put Angola's rating under review for a decline is triggered by the magnitude of the shock due to the sharp fall in oil prices and a severe tightening in global financing conditions, which affect already weak public finances and external position, and the high financing needs ", reads the note sent to Lusa at the end of the afternoon.
In the note, analysts explain that "the weak government capacity, despite the various reforms implemented in recent years, undermines the Government's ability to respond to this shock and is a guiding thread of this rating action".
With this action, Moody's does not yet downgrade Angola's rating, warning the market that conditions have changed and that in the coming weeks it will assess the course of events and then decide, or not, to lower the rating.
"This review period will allow Moody's to gauge the Government's overall policy response to the shock and the authorities' ability to manage the additional stress on public finances due to falling oil prices, the severity of increased external vulnerability and the increase in prices. risks associated with large debt payments ", conclude the analysts.
Moody's announcement follows in the footsteps of the other two major agencies, Standard & Poor's and Fitch, which this month and in February, respectively, worsened their analysis of the country's sovereign credit quality.
