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Thursday 24 June 2021
HomeNewsTunisia: Standard & Poor's could lower sovereign rating of Tunisia

Tunisia: Standard & Poor’s could lower sovereign rating of Tunisia

Rating agency Standard & Poors (S & P), which grants sovereign ratings to 13 countries in the Middle East and North Africa (MENA), said that five countries in the region have a negative outlook, adding that ‘there is one chance in three that it can lower their sovereign ratings in a year or two.

Tunisia is part of this group of five countries along with Bahrain, Egypt, Jordan and Oman and Tunisia.

The negative outlook reflects the opinion of the agency that it could lower the ratings if political tensions will escalate and further weaken the economic outlook or results at the external and budget levels, the agency said.

In Tunisia, Morocco, and Jordan, policy responses may become less predictable if the domestic political situation will deteriorate even further.

“We also see an increased possibility that political choices – popular pressure – weaken support for the sustainability of public finances and balanced economic growth.

We believe that given the strong social pressures to which those countries are subjected, it is unlikely that any new government gives priority to such measures as subsidy reform – that foster growth while putting public finances on a more sustainable base, the rating agency said.

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