Bloomfield Investment Corporation has, in sovereign rating in local currency (CFA), confirmed the long-term rating "A" with a stable outlook assigned a year ago to the State of Benin, announced the leaders of this agency rating agency based in Abidjan.

On the other hand, Bloomfield has revised the short-term rating from A2 to A1- with a stable outlook. The validity of the rating goes from June 2022 to May 2023.

Over the long term, Bloomfield justifies its rating by the high credit quality. The rating team maintains that the protective factors are good. However, she is of the opinion that the risk factors are more variable and more important in times of economic pressure.

In the short term, the rationale for the rating is based on "High Certainty of Timely Repayment". For Bloomfield, liquidity factors are strong and supported by good core protection factors. The risk factors are rated as "very low".

Benin's state rating is based on a number of positive factors. This is particularly the case of the rising economic growth rate at the end of 2021, the generally positive social impacts of the implementation of the PAG 2016-2021, the exceptional mobilization of resources internationally, reflecting the confidence of investors or a good capacity to service the public debt despite a contained increase in indebtedness. The rating team also positively assessed the new specific economic and financial program concluded with the IMF and the relatively stable political climate after a tense electoral period in 2021.

However, Bloomfield reports three main factors of fragility of the credit quality of the State of Benin. This is an increase in the budget deficit, despite an increase in budgetary resources, an inflationary context accentuated by the crisis in Ukraine, which affects budgetary management and the trade balance and domestic stability threatened by armed incursions.

As of December 31, 2021, Benin's nominal GDP stood at 9831 billion FCFA (15.729 billion dollars) against 9009 billion FCFA (14.414 billion dollars) in 2020. As for the real GDP growth rate, it is is established during the same period at 7.2% against 3.8%.

The country's total debt to GDP ratio is estimated at 49.7% against 46.1% in 2020. As for the proportion of external debt in GDP, it stands at 34.0% against 26.0% in 2020 .The budget balance on a payment order basis, including grants, is -5.7% of GDP against -4.7% in 2020.