Ivory Coast's Credit Rating Affirmed at BB- by S&P Following $2.6 Billion Eurobond Sale

Ivory Coast's sovereign credit rating has been reaffirmed at BB- with a positive outlook by S&P Global Ratings, following a successful $2.6 billion eurobond sale in January 2024. This rating remains three levels below investment grade, but the positive outlook signals potential for an upgrade.

The eurobond sale marked the end of sub-Saharan Africa's nearly two-year absence from international capital markets. Despite a 30% decline in cocoa production during the 2023-24 season, Ivory Coast's finances have been bolstered by the eurobond proceeds and a $4.8 billion funding agreement with the International Monetary Fund (IMF).

Why this matters: The successful eurobond sale and IMF funding agreement demonstrate Ivory Coast's ability to navigate economic challenges, which could inspire confidence in other African nations seeking to access international capital markets. This development may also have a positive impact on the regional economy, as Ivory Coast's growth can have a ripple effect on neighboring countries.

Ivory Coast, the world's top cocoa producer, has faced significant challenges due to the decline in cocoa output. However, the country's economy remains one of the fastest-growing in sub-Saharan Africa. The IMF forecasts a 6.5% expansion in gross domestic product (GDP) for 2024, up from 6.2% in the previous year.

The positive outlook from S&P Global Ratings suggests that Ivory Coast's financial position is stabilizing, despite the downturn in cocoa production. The successful eurobond sale has provided much-needed liquidity, allowing the government to manage its fiscal responsibilities more effectively.

The $4.8 billion funding agreement with the IMF further strengthens Ivory Coast's financial reserves, providing a buffer against economic shocks. This agreement, coupled with the eurobond sale, indicates a robust financial strategy aimed at sustaining economic growth and stability.

Ivory Coast's reaffirmed credit rating and positive economic outlook are significant achievements, especially in the context of regional economic challenges. The country's proactive financial management and successful engagement with international capital markets underscore its commitment to maintaining economic resilience.

Key Takeaways

• Ivory Coast's credit rating reaffirmed at BB- with a positive outlook by S&P Global Ratings.
• $2.6 billion eurobond sale marks sub-Saharan Africa's return to international capital markets.
• IMF funding agreement provides $4.8 billion buffer against economic shocks.
• Ivory Coast's economy forecast to grow 6.5% in 2024, despite 30% decline in cocoa production.
• Country's financial management and international engagement boost regional economic confidence.