Moody's Investors Service maintained its B2 issuer rating on Tunisia, citing the strength of the North African country’s foreign exchange buffers, but changed its outlook to negative.
The ratings agency cited the economic, financial, social and political challenges faced by the country's new technocratic government in implementing its reform agenda as the reason for its more cautious assessment. The country's sovereign debt rating has been under review since April.
The confirmation of its B2 rating reflects the “resilience of the foreign exchange reserve buffer observed since the opening of the review, as a backstop for maturing external liabilities over the next year”, Moody’s said in a statement on Wednesday.
"The instalment of a new technocratic government in September supports Moody's assessment that Tunisia's institutions and governance will contribute to policy continuity.”
The government is likely to maintain medium-term fiscal and economic reform implementation under a new International Monetary Fund programme. Moody’s expects monetary and fiscal policy to continue to be aimed at “containing Tunisia's external and fiscal imbalances”, which will support its access to “official and market financing”.
Tunisia's economy, which is largely reliant on tourism, has taken a hit in the wake of the Covid-19 crisis. Moody's expects its gross domestic product to contract 6.5 per cent this year, followed by 4 per cent growth as it recovers from the pandemic shock in 2021. The ratings agency expects growth to average 2-3 per cent per year thereafter. The IMF in April approved a $745 million emergency loan for Tunisia to help the country mitigate the impact of the Covid-19 crisis on its economy.
“The pandemic exacerbates a decline in trend growth over the past decade,” Moody’s said. The government's high debt ratio constrains scope for a rapid increase in public investment as a means to boost growth potential.”
Taking weaker revenue into account on the back of the pandemic shock, Moody's expects the fiscal deficit to widen to 7 per cent of GDP in 2020, followed by 4.5 per cent in 2021. Tunisia recorded a deficit of 3.6 per cent in 2019.
The ratings agency also expects Tunisia’s debt burden to increase to over 80 per cent of GDP this year and to stabilise within the 80-85 per cent range around 2024.
“A number of structural weaknesses weigh on public finances, including a large public-sector wage bill amounting to over 15 per cent of GDP, which remains to be addressed over the long term,” Moody’s said.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
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Pandemic Parenting
RESULTS
1.45pm: Maiden Dh75,000 1,200m
Winner: Lady Parma, Richard Mullen (jockey), Satish Seemar (trainer).
2.15pm: Maiden Dh75,000 1,200m
Winner: Tabernas, Connor Beasley, Ahmed bin Harmash.
2.45pm: Handicap Dh95,000 1,200m
Winner: Night Castle, Connor Beasley, Satish Seemar.
3.15pm: Handicap Dh120,000 1,400m
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
3.45pm: Handicap Dh80,000 1,400m
Winner: Mutawakked, Szczepan Mazur, Musabah Al Muhairi.
4.15pm: Handicap Dh90,000 1,800m
Winner: Tafaakhor, Sandro Paiva, Ali Rashid Al Raihe.
4.45pm: Handicap Dh80,000 1,950m
Winner: Cranesbill, Fabrice Veron, Erwan Charpy.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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- 600-seat auditorium
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Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
- Life in the royal residences with Sheikha Osha bint Nahayan
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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MATCH INFO
Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
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CREW
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What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
Brief scores:
QPR 0
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Plastic tipping point
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The biog
Born: High Wycombe, England
Favourite vehicle: One with solid axels
Favourite camping spot: Anywhere I can get to.
Favourite road trip: My first trip to Kazakhstan-Kyrgyzstan. The desert they have over there is different and the language made it a bit more challenging.
Favourite spot in the UAE: Al Dhafra. It’s unique, natural, inaccessible, unspoilt.
Profile of Tarabut Gateway
Founder: Abdulla Almoayed
Based: UAE
Founded: 2017
Number of employees: 35
Sector: FinTech
Raised: $13 million
Backers: Berlin-based venture capital company Target Global, Kingsway, CE Ventures, Entrée Capital, Zamil Investment Group, Global Ventures, Almoayed Technologies and Mad’a Investment.
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Our family matters legal consultant
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- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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Company: Rent Your Wardrobe
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
