S&P Cuts Zambia Credit Rating to “Selective Default"

Ratings agency S&P has slashed Zambia’s credit rating to “selective default” after the government missed an interest payment last week and announced it would suspend debt service to external commercial creditors, Reuters reported. Zambia - one of the world’s top copper producers - was struggling with its ballooning debt before the coronavirus pandemic roiled global markets and looks headed for a messy and protracted default. “We view the nonpayment of debt service and the statement that the government will not make debt service payments as a default on its commercial debt obligations,” S&P Global Ratings said in a statement released late on Wednesday. “We forecast that Zambia will remain in payment default for at least the six months of the standstill period, during which the government hopes to complete a broader debt restructuring.” Read more