By Stephen NakrosisMoody's Investors Service said Friday it was downgrading the government of Kenya's long-term foreign-currency and local-currency issuer ratings and senior unsecured debt ratings to B3. The rating had previously been B2, with a negative outlook, Moody's said. The rating downgrade was driven by an increase in government liquidity risks, Moody's said. Moody's also said it was placing Kenya's ratings on review for downgrade, "prompted by the risk that the deterioration in Kenya's domestic financing conditions persists amid still constrained external financing options." Moody's also said it expects Kenya's interest-to-revenue ratio to peak at 28% in fiscal year 2023, and remain at 26% in the subsequent two years.

Source: Wall Street Journal May 13, 2023 09:44 UTC