Identifier
Created
Classification
Origin
07LILONGWE196
2007-03-15 08:22:00
UNCLASSIFIED
Embassy Lilongwe
Cable title:
MALAWI EARNS IMPROVED CREDIT RATING
how-toVZCZCXRO5956 RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN DE RUEHLG #0196 0740822 ZNR UUUUU ZZH R 150822Z MAR 07 FM AMEMBASSY LILONGWE TO RUEHC/SECSTATE WASHDC 3973 INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHDC RUEATRS/DEPT OF TREASURY WASHDC 0498 RUEAIIA/CIA WASHDC
UNCLAS LILONGWE 000196
SIPDIS
STATE FOR AF/S, INR/AA
STATE FOR EB/IFD/ODF, EB/IFD/OMA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA
USAID FOR AFR/SA, ODP/MCC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV MI
SUBJECT: MALAWI EARNS IMPROVED CREDIT RATING
UNCLAS LILONGWE 000196
SIPDIS
STATE FOR AF/S, INR/AA
STATE FOR EB/IFD/ODF, EB/IFD/OMA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA
USAID FOR AFR/SA, ODP/MCC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV MI
SUBJECT: MALAWI EARNS IMPROVED CREDIT RATING
1. (U) Summary: Malawi's sovereign credit rating has improved from
"CCC" to "B minus", according to a newly-released assessment by
international credit rating agency Fitch Ratings. The Millennium
Challenge-funded evaluation praises the sound fiscal management of
the Mutharika government and predicts a stable outlook for Malawi's
economy in the near term. End summary.
2. (U) As one of the key activities of Malawi's MCA Threshold
program, Fitch Ratings was contracted to carry out a sovereign
credit rating (SCR) assessment in November 2006. The primary
objective was to provide a basic performance measurement for the
GOM's reform program of anti-corruption measures and improved fiscal
management. The Fitch visiting team met with a wide cross section
of players in government, parliament, the financial sector, donors
and the broader business community. The results of the assessment
were released on March 6, and Malawi's SCR has been upgraded from
"CCC" to "B minus with a stable outlook."
3. (U) The Fitch report cautions that Malawi must improve its
ability to manage external borrowing to avoid a rapid accumulation
of new debt, and must carefully manage its public finances in the
run-up to national elections in 2009. It acknowledges the potential
for improved current account and fiscal receipts from the new
Kayelekera uranium mine project, scheduled to open late 2008. Fitch
predicts that, with careful fiscal management and improved inflows,
there is room for Malawi to progress to a higher rating within the
"B" category.
EASTHAM
SIPDIS
STATE FOR AF/S, INR/AA
STATE FOR EB/IFD/ODF, EB/IFD/OMA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA
USAID FOR AFR/SA, ODP/MCC
SIPDIS
E.O. 12958: N/A
TAGS: ECON EAID EFIN PGOV MI
SUBJECT: MALAWI EARNS IMPROVED CREDIT RATING
1. (U) Summary: Malawi's sovereign credit rating has improved from
"CCC" to "B minus", according to a newly-released assessment by
international credit rating agency Fitch Ratings. The Millennium
Challenge-funded evaluation praises the sound fiscal management of
the Mutharika government and predicts a stable outlook for Malawi's
economy in the near term. End summary.
2. (U) As one of the key activities of Malawi's MCA Threshold
program, Fitch Ratings was contracted to carry out a sovereign
credit rating (SCR) assessment in November 2006. The primary
objective was to provide a basic performance measurement for the
GOM's reform program of anti-corruption measures and improved fiscal
management. The Fitch visiting team met with a wide cross section
of players in government, parliament, the financial sector, donors
and the broader business community. The results of the assessment
were released on March 6, and Malawi's SCR has been upgraded from
"CCC" to "B minus with a stable outlook."
3. (U) The Fitch report cautions that Malawi must improve its
ability to manage external borrowing to avoid a rapid accumulation
of new debt, and must carefully manage its public finances in the
run-up to national elections in 2009. It acknowledges the potential
for improved current account and fiscal receipts from the new
Kayelekera uranium mine project, scheduled to open late 2008. Fitch
predicts that, with careful fiscal management and improved inflows,
there is room for Malawi to progress to a higher rating within the
"B" category.
EASTHAM