Zambia Credit Rating Cut by S&P as Budget Deficit Worsens
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Standard & Poor’s cut Zambia’s credit rating deeper into junk as it forecast the government will post a budget deficit far worse than previously estimated, adding to its debt burden.
The rating was lowered to B, five levels below investment grade, from B+, with the outlook changed to stable from negative, S&P said in a statement. S&P kept the rating unchanged about three months ago. The currency weakened to head for its lowest closing price since April 6, while bonds fell, pushing the yield on Zambian debt due April 2024 to an all-time high.