S&P Upgrades Zambia's Credit Rating

Standard and Poors Global Ratings has upgraded Zambia's long-term foreign and local currency sovereign credit ratings to CCC+/C from SD/SD, confirming the country's exit from default status.

The upgrade marks a major milestone in Zambia's economic reconstruction and signals renewed international confidence in government reforms under President Hakainde Hichilema.

According to S&P, the improved rating reflects Zambia's strengthening fiscal position and progress toward restoring financial stability, reducing refinancing risks, and improving standing in international markets.

The agency notes that Zambia has concluded restructuring agreements with official and commercial creditors representing approximately 94 percent of the US$13.3 billion debt under review. Only a small portion of commercial debt, largely held by commercial banks, remains under negotiation.

S&P adds that risks posed by potential holdout creditors are limited, thanks to strong safeguards including comparability-of-treatment provisions under the G20 Common Framework and most-favoured-creditor clauses in the restructured Eurobonds.

Finance Minister Situmbeko Musokotwane welcomed the upgrade as a strong vote of confidence in Zambia's economic reforms, governance credibility, and the resilience of its people.

The stable outlook underscores S&P's recognition that Zambia is gradually restoring fiscal space, improving external buffers, and rebuilding investor confidence despite tight global financing conditions.