“There’s going to be a risk-premium increase,” S&P Financial Services Ratings Director Matthew Pirnie said of any future issues. Gosrani said, “Credit ratings may play a useful role in enabling corporations and governments to raise money in the capital markets. The likelihood of excessive spending on elections scheduled for August 2017 will raise more red flags, he said. Negative outlook reflects the view that there is at least a one-in-three possibility that Kenya’s ratings could be lower in the next 6-12 months. Updated Mon, June 6th 2016 at 08:46 GMT +3Kenya may have its sovereign credit rating cut by one level because of the nation’s fiscal deficit, S&P Global Ratings’ Financial Services Director Neil Gosrani said.

Source: Daily Nation June 06, 2016 05:48 UTC