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Zambia moves up credit rating ladder after default
Zambia’s sovereign credit rating has been upgraded by Moody’s Ratings from Caa2 to Caa1, reflecting improvements in the country’s debt position following its 2020 default. The ratings agency has also maintained a positive outlook, signalling the possibility of further upgrades if Government sustains its fiscal…
Picture: Zambia Monitor
Zambia’s sovereign credit rating has been upgraded by Moody’s Ratings from Caa2 to Caa1, reflecting improvements in the country’s debt position following its 2020 default.
The ratings agency has also maintained a positive outlook, signalling the possibility of further upgrades if Government sustains its fiscal and economic reform programme.
The upgrade, announced on October 30, 2026, comes weeks after Zambia reached a staff-level agreement with the International Monetary Fund (IMF) on a proposed US$1.472 billion, 36-month Extended Credit Facility programme.
The proposed programme, which is subject to approval by the IMF Executive Board, is aimed at safeguarding macroeconomic stability, strengthening debt sustainability and supporting inclusive, private sector-led growth.
In a statement issued on Monday, the Ministry of Finance and National Planning said the rating action reflected sustained improvements in the country’s public debt trajectory, supported by progress in debt restructuring, fiscal consolidation and macroeconomic stabilisation.
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The Ministry said the improved credit rating could boost investor confidence, lower borrowing costs for Government and businesses, attract foreign direct investment and support exchange rate stability.
It said the positive outlook reflected prospects for further improvements in Zambia’s credit standing, provided Government maintained its reform programme.
The Ministry added that the improved rating could open up investment opportunities in infrastructure, export growth and job creation, in line with the Government’s Grow Zambia Agenda.
The development comes ahead of the presentation of the 2027 National Budget by Finance and National Planning Minister Situmbeko Musokotwane in Parliament on Friday, November 6.
The Ministry said the forthcoming Budget would focus on consolidating gains made in economic stabilisation while creating conditions for increased production, investment and employment.
It added that Government remained committed to fiscal discipline, prudent debt management, export diversification and increased value addition across key economic sectors.
However, the Ministry cautioned that the improved credit rating should not be treated as an end in itself, but rather as an opportunity to attract productive investment, strengthen public finances and improve the living standards of Zambians.
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Moody’s Upgrades Zambia’s Credit Rating
Zambia’s international credit standing has received a boost following an upgrade by Moody’s Ratings, which has moved the country’s sovereign credit rating from Caa2 to Caa1, with a positive outlook. The upgrade, announced on 30 October 2026, reflects improvements in the country’s government debt trajectory…