Bloomberg labels Ethiopia’s bonds the best-performing sovereign debt in the emerging markets this year. Bloomberg is a high-tech, market-moving, data-driven, cross-platform, information company designed to solve global problems.
On January 27, 2022, Fitch Ratings Inc. stated Ethiopia’s CCC rating for long-term foreign currency debt. Ethiopia’s ‘CCC’ rating indicates low foreign reserves risks, gross external financing needs increase, and anticipated external financing sources delays.
Out of 80 developing nations tracked by Bloomberg, Ethiopia’s returns are the highest at 13%. This increase resulted from the government’s decision to end a state of emergency as a 15-month conflict eases. After the Ethiopian Council of Ministers shortened the six-month state of emergency, Ethiopia’s bonds have recovered 6 cents on the dollar since January 26. However, the securities lost 28% in the previous year, the worst performance after El Salvador.