Modern S&P Global sign displayed on the exterior of a corporate office building.
S&P Global Ratings has downgraded Senegal’s long-term foreign-currency rating to “CC” from “CCC+,” warning that the planned debt restructuring is likely to cause losses on foreign-currency creditors. The downgrade follows the discovery of billions of dollars in previously hidden debt and comes shortly after Senegal sealed a $2.2 billion loan package with the International Monetary Fund. S&P also lowered the country’s local-currency rating to “CCC” from “CCC+” and kept its outlook negative. The agency said a distressed exchange or default on commercial foreign-currency debt was “extremely likely.” Moody’s issued a similar downgrade in late August, pointing to mounting refinancing pressure. The downgrades underscore the scale of Senegal’s fiscal challenges.