Fitch Ratings has downgraded Cameroon’s Long-Term Issuer Default Ratings (IDRs) to ‘B-‌’ from ‘B’. The Outlook is Stable.

The downgrade reflects heightened political risks related to risks of a disorderly transition of power associated with uncertainties surrounding the presidential succession, and heightened financing pressures stemming from tightness in the Economic and Monetary Community of Central Africa (CEMAC) market and increased reliance on external commercial borrowing in the context of higher financing needs.

The ‘B-‌’ rating balances narrow fiscal deficits, low and declining government debt relative to peers and solid real GDP growth, against weak governance indicators, low GDP per capita, weaknesses in public finance management (PFM) and a significant current account deficit.