Monday, March 5, 2018

Sovereign rating: Govt trashes Moody’s findings


By Mnaku Mbani

Dar es Salaam. The government has trashed Tanzania’s sovereign rating published last weekend by Moody’s, the renowned global credit and sovereignty rating agency.

The permanent secretary in the Ministry of Finance and Planning, Mr Dotto James, confirmed to The Citizen yesterday that the published rating was “premature” and had no government consent.

“It is true that we commissioned Moody’s agency for the work; but we were still in talks with them that were yet to be concluded,” Mr James said, stressing that “the report has been published without the government’s clearance, so, what is being circulated has no authority from our side”.

The rating report – a copy of which The Citizen has obtained – was circulating on social media over the weekend, after Moody’s had posted it on its website.

Mr James said the government was still continuing with internal consultations over the matter, and wondered why Moody’s had “prematurely” released the findings.

He also denied that the government had a meeting with Moody’s rating committee on February 27, this year, as indicated in the rating report.

What Moody’s had done was to come up with a rating report incorporating their own views, which seem to be unrealistic, Mr James said. Moody’s stated that Tanzania had been rated B1, "with a negative outlook”.

The rating indicates that Tanzania scored bettter than other East African countries such as Kenya, which was rated B2 on February 13 this year; Rwanda (August 12, 2016 rating) and Uganda (November 18, 2016 rating