FX.co ★ S&P Downgrades Senegal to CCC+ on Rising Debt Risks

On Friday, credit ratings agency S&P downgraded Senegal's long-term sovereign credit rating from "B-" to "CCC+," highlighting the country's fragile debt situation. The agency has also placed Senegal's ratings on CreditWatch with developing implications, indicating a potential further downgrade should the government fail to refinance its impending commercial debt maturities. S&P stated, "The borrowing needs of the public sector for 2026 are high, as are the levels and costs associated with general government debt. This, coupled with an already strained budgetary deficit, renders public finances precarious." Senegal's financial crisis was exacerbated last year when the new government discovered previously undisclosed debts left by the former administration, which have since surged to $11 billion. In comparison, Moody's last assessment rated Senegal at Caa1 with a negative outlook.