Dagong maintains sovereign credit rating of Madagascar
Updated: 2012-05-28 16:28
(Xinhua)
|
|||||||||
BEIJING - Dagong Global Credit Rating Co Ltd, China's leading rating agency, on Monday maintained both the local and foreign currency sovereign credit ratings of the Republic of Madagascar as CCC, and each with a stable outlook.
The rating reflects that Madagascar's political situation has shown signs of stabilizing and the economy has moderately recovered on the interim government's stimulus policy, Dagong said.
However, the country failed to get a higher rating as the government's solvency has not improved substantially due to large fiscal deficits and government debts, as well as current-account deficits caused by an enlarging trade deficit, the agency said.
The agency said the fact that the interim government had not been internationally recognized, which had made getting foreign economic aid difficult for it, was the main obstacle for Madagascar further boosting solvency.
But surging investment from emerging economies in its mining sector, a recovering tourism sector and government tax reduction polices will all help buoy the economy, it said, expecting the economy to grow 2 percent and 2.5 percent in 2012 and 2013, respectively.
Dagong predicted that the government deficit will fall to 2.8 percent and 2.5 percent in 2012 and 2013, respectively, from 3 percent in 2011, while its debt to GDP ratio will rise to 37 percent by 2013.
- Relief reaches isolated village
- Rainfall poses new threats to quake-hit region
- Funerals begin for Boston bombing victims
- Quake takeaway from China's Air Force
- Obama celebrates young inventors at science fair
- Earth Day marked around the world
- Volunteer team helping students find sense of normalcy
- Ethnic groups quick to join rescue efforts
Most Viewed
Editor's Picks
Supplies pour into isolated villages |
All-out efforts to save lives |
American abroad |
Industry savior: Big boys' toys |
New commissioner
|
Liaoning: China's oceangoing giant |
Today's Top News
Health new priority for quake zone
Xi meets US top military officer
Japan's boats driven out of Diaoyu
China mulls online shopping legislation
Bird flu death toll rises to 22
Putin appoints new ambassador to China
Japanese ships blocked from Diaoyu Islands
Inspired by Guan, more Chinese pick up golf
US Weekly
Beyond Yao
|
Money power |