Moody’s alerts to Tunisia’s weak fiscal strength

Moody’s cautioned about Tunisia’s finances due to the weak fiscal strength and rising debt.

The credit rating agency ranked Tunisia in the B2 negative category in view of the credit challenges including the structural deterioration in its fiscal strength, with the debt ratio has increased sharply to 77% of GDP at the end of 2018 from 70.4% in 2017, Moody’s noted.

Current account dynamics continued to deteriorate in 2018, exacerbating external funding pressures and weighing on foreign-exchange reserve dynamics, it said.

“The negative outlook on Tunisia’s sovereign rating reflects the fact that, despite meaningful progress on fiscal and macroeconomic reforms in recent quarters, external imbalances continued to widen in 2018, weighing on foreign exchange reserve buffers,” Moody’s reported.


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