Namibia receives Fitch upgrade

Dec 14, 2010

Fitch Ratings has upgraded its outlook for sovereign foreign currency credit in Namibia.

The firm increased its rating from positive to stable and also affirmed a BBB- score for the nation's foreign debt. It cited the potential for uranium mining in the country as one reason for its decision, with sovereign credit analyst at Fitch Veronica Kalema stating growth in the sector "will strengthen Namibia's credit fundamentals".

The nation, which recently saw commercial banks lower their prime lending rates due to a instruction from its central bank, has been resilient during the economic downturn and is poised to take advantage of an expected rise in uranium mining, which Fitch predicts could quadruple in the next five years.

In addition, the country has external debt that "remains low relative to [that of its] peers", however, according to Cbonds, the ratings company believes it needs to address the issue of high unemployment and boost domestic investment opportunities.