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LUSAKA, Aug. 27 (Xinhua) -- The Zambian finance minister said Sunday that Standard and Poor's revision of the country's sovereign rating from negative to positive with a stable outlook represents an affirmation of the soundness of policies implemented by the government.
"This development rises on the basis of the critical reforms which we have adopted on as a country under the economic stabilization and growth program to implement fiscal implementation, remove subsidies, reform the energy sector Ryan Kalil Rush Jersey , and embark on diversification of the economy through agriculture development and industrialization," Minister of Finance Felix Mutati said.
The result from the assessment by the rating agency was a welcome incentive for investors as they should remain assured that the country was on track with economic stabilization and growth, Mutati added.
International rating agency Standard and Poor's has revised Zambia's outlook on the 'B' long-term foreign and local currency sovereign ratings to stable from negative.
It also affirmed the 'B' long-term and 'B' short-term sovereigns for Zambia, attributing the reduction in fiscal deficits and the stock of debt as core to the country's rating trajectory.
"We have assigned a stable outlook to reflect a number of more positive developments that we expect will continue to reduce pressure on Zambia's fiscal Luke Kuechly Rush Jersey , economic, and external assessments," the finance ministry quoted an S&P statement as saying.
The rating agency has however warned that the rating could be lowered if the government materially deviated from its fiscal consolidation target and if previously destabilizing factors re-emerged, such as a reverse in copper prices and a reversal of improvements in the liquidity of domestic banking systems.
It also warned that derailment of talks with the International Monetary Fund (IMF) Cam Newton Rush Jersey , which have been going on, could dent confidence and reduce investment as well as offset positive factors.
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