Moody’s Investors Service (“Moody’s”) has today assigned first-time local and foreign currency issuer ratings of B3 to the Government of the Republic of Mali (Mali, Government of). The outlook is stable. The key factors supporting the B3 ratings are as follows:
1- Low (-) economic strength as very low income levels and limited diversification constrain the economy’s capacity to absorb shocks, notwithstanding robust growth supported by international aid and loans;
2- Very Low (+) institutional strength, with in particular a very weak institutional framework which offsets some support to the credit profile from a relatively prudent management of public finances and ongoing improvements in revenue collection;
3- Moderate (-) fiscal strength, reflecting a low debt burden but also a very high share of foreign currency denominated debt and limited fiscal flexibility;
4- High (-) susceptibility to event risk, driven by political risk as the conflict mainly in the North of the country
continues.
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