Published: March 22, 2012
Credit rating agency Moody's Investors Service could upgrade Mauritius.
Credit rating agency Moody’s Investors Service has placed Mauritius’s Baa2 foreign- and local-currency sovereign bond ratings on review for possible upgrade.
As reported in the new issue of EMEA Finance, the Mauritian economy is still growing strong despite challenges from the impact of troubles in the eurozone.
In a statement, Moody’s said the upgrade review had been prompted by foreign direct investment levels, the government’s progress in improving its debt structure and “the Mauritian economy's demonstrated resilience to shocks”.
“The rating agency observes that Mauritius has been resistant to recessions, despite the end of rents that used to be extracted from preferential agreements in the sugar and textile sectors, and despite increasing oil and food prices,” said the agency.
Moody’s also points to potential troubles ahead for the economy. “Given that the EU27 accounts for two -hirds of Mauritius's export market, the country is significantly exposed to the crisis in Europe and the current global slowdown,” the agency said. “The rating agency's review will therefore monitor whether Mauritius will remain resilient to a protracted slowdown in Europe.”