Fitch revises up Namibia credit outlook to positive

NEW YORK, Dec 13 (BestGrowthStock) – Fitch Ratings on Monday raised
its sovereign foreign currency (Read more about trading foreign currency. credit outlook for Namibia to
positive from stable and affirmed its BBB-minus investment
grade credit rating, citing strong prospects for uranium
mining.

“The immense growth of the uranium sector will strengthen
Namibia’s credit fundamentals,” Veronica Kalema, sovereign
credit analyst at Fitch said in a statement.

Fitch said the positive outlook reflects the country’s
resilience to the effects of the global economic crisis and the
uranium mining which it estimates could see production
quadruple by 2015.

Improving prospects in the mining sector, especially
uranium which will feed a renaissance in nuclear energy use
globally, will help offset balance of payments pressures from
Namibia’s large portfolio outflows to South Africa’s capital
markets.

In addition, Fitch said, there is also the possibility that
there will be a “decline in Southern Africa Customs Union
(SACU) transfers due to changes in the formula and the lowering
of trade tariffs globally.

“Although public debt ratios are expected to deteriorate
through 2012, these will remain below rating medians. External
debt also remains low relative to peers. Developments in the
mining sector support medium-term economic growth prospects,
while the strong increase in exports will strengthen the
balance of payments and boost public revenues,” Fitch said.

For a text of the Fitch report, click [ID:nFIT528074].
(Reporting by Daniel Bases, Editing by Chizu Nomiyama)

Fitch revises up Namibia credit outlook to positive