Moody’s warns restructuring could amount to default
By the AFREEQUE newsroom, based on Seneweb
Moody’s warns that restructuring Senegal’s debt would amount to a default, as the country records a 1,469-basis-point yield spread with US Treasury bonds. Senegal must also pay nearly 21 billion CFA francs in interest on 23 November and more than 26 billion on 10 December, according to Bloomberg cited by Le Quotidien.
Senegal has a 1,469-basis-point yield spread between its debt and US Treasury bonds, compared with a 1,000-point threshold associated with situations of financial distress, according to Bloomberg cited by Le Quotidien. The cost of insurance against a default on Senegal’s debt has also risen by more than 33%.
The Senegalese Treasury must pay nearly 21 billion CFA francs in interest on 23 November, followed by more than 26 billion on 10 December. Moody’s fears that the rejection of the 2026 budget by the National Assembly could delay the agreement with the IMF and implementation of the Senegal Debt Treatment Plan (PTDS), intended to facilitate repayment of the country’s debts.
The situation follows Moody’s downgrade of Senegal’s sovereign rating to “Ca” on 30 October, as well as the agency’s forecast of losses of 35% to 65% on Senegal’s external debt. the downgrade of the rating to “Ca”
