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CameroonOnline.ORG | Moody’s Ratings has affirmed Cameroon’s long-term issuer ratings at Caa1, with a stable outlook. The decision reflects ongoing liquidity challenges in the Central African Economic and Monetary Community (CEMAC) market, where rising interest rates and falling subscription rates signal pressure on regional financing.
Despite these risks, Moody’s notes that Cameroon’s resilient economy, declining debt burden, and improving financial management support the current rating. Government debt is expected to fall below 40% of GDP by 2025, placing Cameroon ahead of many Caa-rated peers.
However, risks remain high. Liquidity pressures, bureaucratic delays, and weak state-owned enterprises could still trigger a liquidity-driven default, even if investor losses would likely be minimal. Political uncertainty adds to the outlook, with President Paul Biya, now 92, seeking an eighth term in the October 2025 election. The lack of a clear succession plan and ongoing security conflicts raise concerns about a disorderly transition.
On the positive side, reforms under the IMF programme have strengthened public financial management, enhanced revenue mobilization, and streamlined debt payments, helping Cameroon build a track record of meeting obligations.
Overall, Moody’s sees a balance of risks: structural weaknesses and political uncertainty on one hand, and fiscal reforms and resilient growth on the other, leaving Cameroon’s credit profile vulnerable but stable for now.
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