Another rating for Zambia
Zambia has been given another B plus sovereign credit rating by Standard and Poor's, a Rating Agency in the USA.
The new rating is the second after FITCH; another Rating Agency gave Zambia a B plus rating about a month ago.
Sovereign credit ratings give investors insight into the level of risk associated with investing in a particular country and also include political risks.
At the request of the country, a credit rating agency will evaluate the country's economic and political environment to determine a representative credit rating.
Obtaining a good sovereign credit rating is usually essential for developing countries in order to access funding in international bond markets.
Government has already announced intentions to issue a 500 million dollar international bond.
Another common reason for obtaining sovereign credit ratings, other than issuing bonds in external debt markets, is to attract foreign direct investment.
To give investors confidence in investing in their country, many countries seek ratings from credit rating agencies like Standard and Poors, Moody's, and Fitch to provide financial transparency and demonstrate their credit standing.
Ends/BBC/ 23/03/11Â Â Â Â 10:38 hours