25/05/11 - Standard and Poor’s raises outlook for Cape Verde

Risk rating agency Standard & Poor’s (S&P) Tuesday raised its outlook on Cape Verde from “negative” to “stable” despite maintaining the country’s long term sovereign debt credit risk rating at “B+” and short term debt at “B”.

In a statement, S&P said that, despite the high levels of foreign and fiscal debt, Cape Verde, by maintaining its political stability, had demonstrated that there were prospects of “moderate to strong” growth of the economy.

The growth prospects are “partly” based, S&P said, on Foreign Direct Investment (FDI), which remains “firm” at around 7 percent of gross domestic product (GDP). (macauhub)