Moody’s issues new warnings over Senegal’s debt treatment

Moody’s has warned Senegalese financial authorities that a debt exchange or restructuring undertaken under distressed conditions could be treated by the agency as a default. Senegal faces an interest payment of nearly 21 billion CFA francs on November 23 for bonds maturing in 2033, followed by more than 26 billion CFA francs due on December 10. Bloomberg reports that the extra yield investors demand has reached 1,469 basis points—above the 1,000-point distress threshold and higher than Lebanon’s before its 2020 default. The cost of insuring Senegalese debt against default has also risen by more than 33%, particularly since an agreement with the IMF was announced.