The credit-rating agency Standard & Poor’s (S&P) announced, in a release published on 14 August, having downgraded the prospects of the sovereign rating of Angola from “stable” to “negative”. The rating of this country, second crude oil producer in Africa has however been maintained at “B+”.

S&P explained the downgrading of Angola’s rating by the “continuous deterioration of Angola’s fiscal and external deficits ”in the wake of more than a 50% drop in the price of crude oil over the past twelve months.

According to the credit-rating agency, the budget deficit has risen to 5.5% of GDP in 2014 and should reach 7% in 2015, and this despite the downward adjustment of the state budget and the removal of certain fuel subsidies.

The current account deficit reached 2.5% of GDP last year. This year, it should widen further, to reach 6.7%. In Angola, oil represents about 70% of tax revenues of the state and 95% of export revenues.

“The negative prospects indicate that we can downgrade the long term rating for Angola if the tax positions continue to deteriorate during the next twelve months”, writes S&P.