Moody's downgrades Mauritius

Moody's Investors Service said it downgraded the government of Mauritius' long-term foreign- and local-currency issuer rating to Baa2 from Baa1 and maintained the negative outlook.

“The downgrade to Baa2 reflects the weakening in fiscal and economic strength as a result of the shock brought on by the coronavirus pandemic. The large share of economic activity, export earnings, and employment derived from tourism and related sectors will weigh on the pace of the economic recovery. This in turn will slow the pace of fiscal consolidation. Combined with large fiscal support, this points to a sharp and long-lasting deterioration in fiscal and debt metrics, resulting in a weaker fiscal profile than Baa1-peers, and reducing the government's shock absorption capacity,” Moody’s said in a press release.

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