ADDIS ABABA, Aug 15 – Fitch Ratings has upgraded the Republic of Congo’s long-term local-currency rating to CCC+ from CCC, citing reduced near-term refinancing risks, improving growth prospects and a gradual decline in government debt.
The ratings agency also affirmed the Republic of Congo’s long-term foreign-currency rating at CCC+, keeping the country firmly within speculative-grade territory despite improvements in its fiscal and financing outlook.
Fitch said the upgrade was supported by better regional financing conditions and a smoother government debt repayment profile. The agency also pointed to expected growth in the oil and gas sector, fiscal surpluses and stronger nominal economic growth as factors supporting the country’s credit position.
Government debt is projected to decline to 80.9% of gross domestic product in 2026 from 92.1% at the end of 2025, according to Fitch. The reduction is expected to be supported by fiscal surpluses and stronger nominal growth.
The improved assessment comes as the government of President Denis Sassou Nguesso seeks to consolidate political stability and diversify an economy heavily dependent on hydrocarbons. Nguesso won more than 94% of the vote in March’s presidential election, extending his nearly 42-year tenure in power.
Despite the upgrade, Fitch continues to identify significant structural weaknesses. The agency cited poor public financial management, heavy reliance on oil revenues and recurring government arrears as persistent constraints on the country’s creditworthiness.
The Republic of Congo’s dependence on oil leaves its public finances particularly exposed to changes in global energy prices and production levels. While expansion in the oil and gas sector could support economic growth and government revenues, Fitch’s continued CCC+ rating reflects the challenges involved in translating those gains into a more resilient fiscal position.
The upgrade therefore represents an improvement in the country’s near-term financing and debt-risk profile rather than a broad reassessment of its underlying credit quality. Continued debt reduction, stronger public financial management and greater economic diversification will remain important to any further improvement in the sovereign’s rating.
