LIBREVILLE, Dec 22 – Global credit ratings agency Fitch on Friday downgraded Gabon’s long-term foreign-currency issuer default rating to CCC- from CCC, pointing to rising fiscal deficits and the government’s limited access to regional debt markets.
Fitch said the downgrade reflects significantly higher local-currency funding needs and growing strains in domestic financing conditions, which have widened the gap between Gabon’s local- and foreign-currency credit profiles.
Investor appetite for Gabonese government debt weakened sharply in the second half of the year, the agency noted, as the country faces mounting pressure from declining oil output, ambitious public investment plans, and rising debt risks.
The World Bank has also warned that despite recent political transition and reform momentum, Gabon’s fiscal position remains fragile, underscoring persistent structural vulnerabilities in public finances.
Fitch expects government debt to climb to 80.4% of gross domestic product in 2025, driven largely by fiscal expansion and constrained financing options.
In a further sign of deteriorating credit conditions, Fitch also downgraded Gabon’s long-term local-currency issuer default rating to CC from CCC, highlighting increased risks around debt servicing and liquidity.