S&P downgrades Senegal further into junk on debt default risk
S&P Global Ratings downgraded Senegal’s long-term foreign-currency rating, citing a high chance of default after an IMF-linked $2.2 billion loan agreement. The decision follows disclosure of undisclosed debt and a political split over restructuring.
2 billion loan. The cut pushed the West African nation further into junk territory and reflects its vulnerability after the government identified billions of dollars in undisclosed debt from a previous administration. Disputes over how to address the debt problem triggered a political crisis that split the alliance that brought the government to power in 2024. President Bassirou Diomaye Faye said he was open to debt restructuring, while his former prime minister, Ousmane Sonko, opposed it.
The rift led Faye to fire Sonko and dissolve his government before naming new ministers. Sonko, now the parliamentary speaker, has recently softened his position on debt restructuring.