Moody's downgrades Senegal's rating due to political tensions

The rating agency's comprehensive report indicates that political instability at the highest levels of government is eroding the confidence of international creditors and investors. Moody's analysis highlights several constraints on Senegal's economic dynamics, particularly sociopolitical risks. The agency notes that political tensions, significant social pressures, and rising regional security risks limit the Senegalese authorities' ability to implement the necessary sustainable fiscal adjustment to reduce debt.

Moody's explicitly points to the tensions between the Executive and the National Assembly as a significant risk factor that could directly impact the implementation of budgetary measures crucial for public finance consolidation. The agency specifically cites the dismissal of former Prime Minister Ousmane Sonko and his subsequent election as President of the National Assembly as having exacerbated institutional tensions between the executive and legislative branches, increasing the risk of delays in fiscal measures. This rupture between President Bassirou Diomaye Faye and his former Prime Minister is now viewed by markets as a concrete risk to the country's fiscal trajectory and its ability to honor its debt.

Moody's warns that prolonged confrontation between the executive and the National Assembly could slow fiscal reforms at a time when Senegal needs