GABON: On 5 September, Fitch Ratings placed Gabon’s B- long-term foreign-currency and local-currency issuer default ratings (IDR) on rating watch negative (RWN).
The B short-term foreign- and local-currency IDRs and the B- issued ratings on Gabon’s long-term foreign-currency senior unsecured bonds have also been placed on RWN. According to the statement, the RWN reflects high political uncertainty in Gabon following the military coup on 30 August 2023. Fitch is concerned that there could be a risk of sanctions from the regional states, which could impact Gabon’s ability to make debt payments.
In addition, recall that a Committee for the Transition and Restoration of Institutions (CTRI) was formed with its leader, General Brice Oligui Nguema, sworn into office on 4 September as president of the transition. Fitch is concerned about the transitional government’s willingness and ability to meet the country’s debt obligations given that the coup may have weakened the institutional capacity of the Treasury and the debt management team.
