The Standard & Poor’s (S&P) financial rating agency maintained Angola’s rating in B-, below the investment recommendation, and also the forecast of stable credit quality developments in this Lusophone African country.
© Lusa
17/08/2026
by
Lusa
Oanalysts consider that “public finances continue to run the risk of falling below targets, with an increase in fuel subsidies expenditure in 2026 and high costs expected on the eve of the elections in 2027”.
In this scenario, they confirmed the ‘ratings’ B- and B for Angola and maintained the stable perspective, read in the statement released on Friday, in the announcement of maintaining Angola’s risk assessment at a level below the investment recommendation, or ‘junk’, as it is known, and that balances the increase in oil revenues with the difficulties in managing the targets of public finances.
“ Oil prices are well above those in the Angola budget for 2026; however, limited volumes of oil production are restricting the benefits of higher prices”, reads the note.
S&P recognises that the government is trying to control the debt to ensure savings that allow it to continue to honour international financial commitments, but stresses that the country “continues to face considerable debt service obligations.”.
Angola will have to pay 6.5 billion dollars (5.6 billion euros) this year, which increase to 9.1 billion dollars (7.8 billion euros) next year, and 11 billion dollars (9.5 billion euros) in 2028, but S&P still believes that the country will be able to honour the financial commitments, recognizing the various financial management initiatives in the first half of this year.
Oil, they point out, continues to play a decisive role in the economy: “The economic stability of Angola and the government’s ability to honour the considerable debt payments depend on favorable oil prices and production to remain above 1 million barrels a day,” as this sector represents “about 14% of GDP, 92% of exports of goods and more than 40% of tax revenues.”.
S&P predicts that this year's total oil price will be $98 per barrel, which represents a 42% increase compared to the 69 dollars of the previous year and is 61% above the Angola budget forecast, which pointed to an average price of $61 per barrel.
“ While higher oil prices support tax revenues, they also lead to higher tax expenditure in the form of fuel subsidies,” analysts insist.
At macroeconomic level, S&P expects an average growth of 3.5% this year, then slowing to 2.7% between 2027 and 2029.