Fitch Ratings has upgraded Tunisia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’. It has also removed the Long-Term IDRs from Under Criteria Observation (UCO), it said Thursday.
The upgrade to ‘CCC+’ reflects Fitch’s view that the Staff Level Agreement reached with the IMF for a new 48-month USD1.9 billion Extended Fund Facility (EFF) will unlock large amounts of official creditor funding and support fiscal consolidation.
“The IMF program aims to address Tunisia’s main structural weaknesses (through revenue mobilization, control of the public wage bill, subsidies and public sector enterprise (SOEs) reforms) and will not require debt restructuring. Approval of the program by the IMF Board and indications of strong compliance could further support Tunisia’s credit profile,” said the ratings agency.
It added that approval of the program by the IMF Board and indications of strong compliance could further support Tunisia’s credit profile.
