The decision by the rating agency Moody’s to downgrade Senegal’s sovereign credit rating in late October 2025 triggered an immediate week-long sell-off in Senegal’s Eurobonds. This was the third downgrade in one year. It left the country’s 16-year bond trading at a 40% discount to its face value. Meaning, for every one dollar denominated bond, it was being sold for 60c on the market.
Moody’s decision once again raised questions about the accuracy of decisions taken by the world’s three biggest rating agencies – Moody’s, Standard and Poor’s, and the Fitch – when it comes to African countries.
One of the main reasons for Moody’s downgrade was Senegal’s decision to turn to regional markets to raise capital. Since the start of 2025, the government has raised over US$5 billion through the West African Economic and Monetary Union regional bond market. This is approximately 12% of Senegal’s US$42 billion public debt.
