Moody's upgrades Zambia's credit rating to Caa1
The rating agency cited progress in debt restructuring and fiscal consolidation following the country's 2020 default.
Moody's Ratings upgraded Zambia's sovereign credit rating from Caa2 to Caa1 on October 30, 2026, reflecting sustained improvements in the country's debt trajectory since its 2020 default.
The Ministry of Finance and National Planning stated the upgrade demonstrates progress in debt restructuring, fiscal consolidation, and macro-economic stabilisation, following a staff-level agreement with the IMF for a proposed US$1.472 billion Extended Credit Facility.
The improved credit rating could strengthen investor confidence, potentially lower borrowing costs for government and businesses, attract foreign direct investment, and support exchange-rate stability, aligning with President Hichilema's Grow Zambia Agenda.
Why it mattersZambia's improved credit rating could strengthen investor confidence and attract foreign direct investment.