In a statement released on Tuesday, Moody's justified the decision to downgrade the rating with "the shocks resulting from the sharp drop in oil prices and the pandemic of the new coronavirus and the related worsening of the currency devaluation.
These factors "contributed to a significant weakening of the country's already weak public finances and fragile external position", he specified.
For Moody's, the shift from perspective to stable means that credit risks to Angola are "adequately reflected in the current Caa1 rating".
Both B3 and Caa1 ratings belong to a non-investment grade, whose scale down goes from Ba1 to C. Bonds rated Caa (1, 2 or 3) are considered to be of poor quality and subject to very high credit risk as defined by the rating agency.
