Moody’s keeps Senegal at Caa2 and warns of budgetary tensions
By the AFREEQUE newsroom, based on SeneNews
Moody’s has maintained Senegal’s local-currency rating at Caa2 and warned that disagreements over the supplementary finance bill could strain relations with the International Monetary Fund. In its analysis published on Thursday, the agency linked these risks to tensions between the executive and the parliamentary majority, SeneNews reports.
Moody’s has maintained Senegal’s local-currency rating at Caa2 and warned of liquidity pressures, according to an analysis published by the credit rating agency on Thursday. It believes disagreements over the 2026 supplementary finance bill could strain relations between Dakar and the International Monetary Fund (IMF).
The agency warned that parliament’s rejection of measures in the IMF programme could delay its approval and the associated disbursements. Such delays would intensify short- and medium-term liquidity pressures, including on local-currency bonds, and make it harder to secure the financing needed to meet the state’s payment obligations. Moody’s also noted limited parliamentary support for budget measures and said the Senegalese authorities do not want to include local-currency debt in the scope of debt treatment.
The analysis comes after lawmakers from the ruling majority rejected the supplementary budget, followed by the government’s defence of its budget choices on 24 October (the Senegalese government’s position). It is part of parliamentary debates on the 2026 supplementary budget, which was considered by the National Assembly on 26 October.
