S&P downgrades Senegal to 'CC', flagging high likelihood of distressed exchange

On 7 September 2026 S&P Global Ratings cut Senegal’s long‑term foreign‑currency sovereign rating to 'CC' (from 'CCC+'), saying a distressed exchange or default on Senegal’s foreign‑currency commercial debt is highly likely following the authorities' announced debt‑restructuring plan.

The downgrade raises risk premia on Senegal’s external bonds and increases capital‑charge and liquidity pressures for regional and international holders of its euro‑denominated paper. Secondary spreads are likely to widen, particularly in the belly and long end, until creditor treatment under the restructuring is clarified. Fiscal relief from IMF support may limit longer‑term sovereign stress, but short‑term rollover and repricing risks will remain elevated.

IMF board approval of the $2.2bn program and formal creditor restructuring terms (haircuts, maturities, inclusion list).