S&P downgrades Senegal’s rating to “CCC+” due to growing financial constraints

Senegal’s long-term sovereign credit rating was reduced from “B-” to “CCC+” by credit ratings agency S&P on Friday, citing the West African nation’s fragile debt situation.

Additionally, it listed Senegal’s ratings as “CreditWatch developing,” indicating that if the government is unable to refinance its impending commercial maturities, it may lower them.

“Public-sector borrowing needs for 2026 are elevated, as is the level and cost of general government debt and the starting point for the budgetary deficit, making public finances precarious,” stated S&P.

Last year, a new government discovered hidden debts from the previous administration that have since grown to $11 billion, throwing Senegal’s finances into a financial catastrophe.

After the undisclosed loans were discovered last year, the International Monetary Fund halted a $1.8 billion program with the West African country, which caused Senegal’s international bonds to decline and a number of credit downgrades.

Since then, the government and the IMF have had multiple rounds of negotiations to settle the debt-misreporting matter; but, last week’s Fund mission to Dakar ended without a new program agreement.

Senegal’s rating was lowered to CAA1 by Moody’s last month after S&P had dropped it to B- in July and placed it on a negative outlook.