The Senegalese government has sharply criticized ratings agency Moody’s for its recent downgrade of the country’s credit rating, describing the move as “subjective and biased” amid ongoing efforts to secure renewed financial support from the International Monetary Fund (IMF).
Moody’s on Friday lowered Senegal’s long-term debt rating from B3 to Caa1, assigning a negative outlook that signals the possibility of further downgrades in the coming months. The decision marks the second downgrade by the agency this year.
Senegal is currently grappling with significant fiscal challenges, including a public debt burden equivalent to 119% of its gross domestic product and a budget deficit of 14%. The IMF suspended a $1.8 billion credit line to the country last year following revelations of distorted economic data and fiscal mismanagement.
In a statement issued Saturday, the Ministry of Finance rejected Moody’s assessment, arguing that it failed to account for recent policy measures aimed at stabilizing the budget and improving debt sustainability. “Moody’s evaluation does not reflect the reality of the country’s economic fundamentals, nor public policy measures in place,” the ministry said, urging the agency to adopt “more rigour, objectivity and responsibility.”
The current administration has attributed the flawed economic reporting to the previous government under former President Macky Sall. Formal negotiations with the IMF are scheduled to begin in the coming week as Senegal seeks to restore access to international financing.
The downgrade comes at a critical moment for the West African nation, which is under pressure to demonstrate fiscal discipline and transparency to regain investor confidence and secure external support.
