Company News in Brief
Societe Generale agrees to sell local unit to State of Cameroon
Societe Generale has agreed to sell its Cameroon subsidiary to the State of Cameroon, the France-based international banking group said on Tuesday.
The sale of Societe Generale Cameroun, the value of which was not disclosed, will cover more than 58% shares in the subsidiary, pushing the stake held by Cameroon to 83.7%.
The deal, expected to close by the end of 2025, would have a positive impact of around six basis points on the group's CET1 ratio, which stood at 13.4% at the end of the first quarter, Societe Generale said. A CET1 ratio measures a bank's liquidity to its risk exposure.The lender said that the state would take over all of the activities, client portfolios and employees within the local subsidiary. - REUTERS
S&P Global downgrades Senegal's rating over soaring debt levels
Senegal's sovereign credit rating was cut by S&P Global to B- late on Monday and immediately put on a negative outlook - effectively another downgrade warning - due to growing concerns about the country's soaring debt levels.
Senegal recently increased its debt figures following an audit and S&P said it now estimated that the government's debt-to-GDP ratio finished last year at 118%, compared to its previous forecast of 104%.
Senegal's finance ministry issued a statement saying it "took note" of S&P's decision and wanted to "reaffirm its commitment to budget transparency, and to reassure all its partners of the state's ability to meet its commitments."
S&P said the decision to put Senegal's rating on 'negative outlook' following the one-notch downgrade reflected concerns that the higher debt, coupled with higher-than-expected financing requirements for this year and large debt payments next year, would "intensify funding pressures on the government".
"We understand that Senegal's external financing requirements materially exceed our previous estimates, which may complicate negotiations on a new program with the International Monetary Fund," S&P added in its rating review published late on Monday.
Senegal's sovereign bonds , rose in international trading on Tuesday, although they have lost roughly a quarter on their value since the misreporting was first revealed in September last year.
S&P added that Senegal's 118% debt-to-GDP ratio was the highest of all the African countries it rates in the 'B' long-term rating bracket. Its next rating review date is scheduled for November 16.
"This significant upward revision (in debt) leaves Senegal with no fiscal space for a cushion against any potential economic or financial shock in the future," the rating agency said. - REUTERS
Societe Generale has agreed to sell its Cameroon subsidiary to the State of Cameroon, the France-based international banking group said on Tuesday.
The sale of Societe Generale Cameroun, the value of which was not disclosed, will cover more than 58% shares in the subsidiary, pushing the stake held by Cameroon to 83.7%.
The deal, expected to close by the end of 2025, would have a positive impact of around six basis points on the group's CET1 ratio, which stood at 13.4% at the end of the first quarter, Societe Generale said. A CET1 ratio measures a bank's liquidity to its risk exposure.The lender said that the state would take over all of the activities, client portfolios and employees within the local subsidiary. - REUTERS
S&P Global downgrades Senegal's rating over soaring debt levels
Senegal's sovereign credit rating was cut by S&P Global to B- late on Monday and immediately put on a negative outlook - effectively another downgrade warning - due to growing concerns about the country's soaring debt levels.
Senegal recently increased its debt figures following an audit and S&P said it now estimated that the government's debt-to-GDP ratio finished last year at 118%, compared to its previous forecast of 104%.
Senegal's finance ministry issued a statement saying it "took note" of S&P's decision and wanted to "reaffirm its commitment to budget transparency, and to reassure all its partners of the state's ability to meet its commitments."
S&P said the decision to put Senegal's rating on 'negative outlook' following the one-notch downgrade reflected concerns that the higher debt, coupled with higher-than-expected financing requirements for this year and large debt payments next year, would "intensify funding pressures on the government".
"We understand that Senegal's external financing requirements materially exceed our previous estimates, which may complicate negotiations on a new program with the International Monetary Fund," S&P added in its rating review published late on Monday.
Senegal's sovereign bonds , rose in international trading on Tuesday, although they have lost roughly a quarter on their value since the misreporting was first revealed in September last year.
S&P added that Senegal's 118% debt-to-GDP ratio was the highest of all the African countries it rates in the 'B' long-term rating bracket. Its next rating review date is scheduled for November 16.
"This significant upward revision (in debt) leaves Senegal with no fiscal space for a cushion against any potential economic or financial shock in the future," the rating agency said. - REUTERS
