Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Moody's Changes Tunisia's Outlook to Stable from Negative .. Affirms Caa2 Ratings

Sun 24 Mar 2024 | 06:05 AM
Moody's tower in New York
Moody's tower in New York
Taarek Refaat

Moody's revised its outlook for Tunisia from negative to stable and affirmed its rating at Caa2.

Moody's said that adjusting its forecast to stable reflects the agency's view that the pressures facing the Tunisian government will not increase significantly.

It added that Tunisia's relatively small domestic financing base and the absence of more external financing from multilateral and bilateral partners are putting pressure on financing, quoted by Reuters.

It pointed out that fixing the CAA2 rating for Tunisia reflects a high degree of uncertainty regarding financing sources amid large financing needs.

Moody's expected that Tunisia's reserves would be subject to a possible drawdown, but they would continue to provide cover for imports for at least 3 months by the end of 2024.

While it expects a similar level of financial assistance from Tunisia's bilateral and multilateral partners to continue, even without a program from the International Monetary Fund.