London, Aug. 17, 2026 (Lusa) - The credit rating agency Standard & Poor's (S&P) has maintained Angola's rating at B-, below investment grade, and has also retained its outlook for stable credit quality in the country.
Analysts consider that «public finances remain at risk of falling short of targets, with an increase in expenditure on fuel subsidies in 2026 and high expenditure forecast in the run-up to the 2027 elections».
Against this backdrop, they confirmed the B- and B ratings for Angola and maintained the stable outlook, according to the statement released on Friday, announcing the retention of Angola's credit rating at a level below investment grade – or ‘junk', as it is known – which balances rising oil revenues against difficulties in managing public finance targets.
«Oil prices are well above those forecast in Angola's 2026 budget; however, limited oil production volumes are curbing the benefits of higher prices,» the statement reads.
S&P acknowledges that the government is attempting to control debt in order to secure savings that will enable it to continue honouring its international financial commitments, but stresses that the country «continues to face considerable debt servicing obligations».
Angola will have to pay $6.5 billion (€5.6 billion) this year, rising to $9.1 billion (€7.8 billion) next year, and $11 billion (€9.5 billion) in 2028, yet S&P still believes the country will be able to honour its financial commitments, acknowledging the various financial management initiatives taken in the first half of this year.
Oil, they point out, continues to play a decisive role in the economy: «Angola's economic stability and the government's ability to meet substantial debt repayments depend on favourable oil prices and production remaining above 1 million barrels per day», as this sector accounts for «around 14% of GDP, 92% of goods exports and over 40% of tax revenue».
S&P forecasts that the average oil price for the year as a whole will stand at $98 per barrel, representing a 42% increase on the previous year's $69 and 61% above the forecast in Angola's budget, which projected an average price of $61 per barrel.
«Whilst higher oil prices support tax revenues, they also entail higher fiscal expenditure in the form of fuel subsidies,» the analysts emphasise.
In terms of the macroeconomic outlook, S&P forecasts average growth of 3.5% this year, slowing to 2.7% between 2027 and 2029.
MBA/AYLS // AYLS
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