Ratings agency Moody’s downgraded Tunisia sovereign rating to B1 from Ba3, putting the country’s debt in the “Highly speculative” category.

The agency said the country lack strong tax reforms and delayed in implementing recommendations of the International Monetary Fund (IMF), amid persistent external imbalances.

Moody’s also said the downgrade could be extended further if the country does not immediately implement major reforms. “A sustained economic recovery, supported by reduced social unrest, in addition to the stabilization and reversal of fiscal and external imbalances with improved funding visibility” the agency recommended on its website in this regard.

Since the Jasmin uprising in 2011, Tunisia’s economy has been struggling to get back on its feet. A situation worsened by the wave of terrorist attacks recorded in 2015, significantly impacting the tourism industry, which happens to be one of Tunisia’s main sources of revenues.

Aaron Akinocho