Senegal has criticized Moody’s downgrade of its credit rating, describing it as “subjective and biased.” The West African nation is seeking new aid from an International Monetary Fund (IMF)-supported program. On Friday, Moody’s lowered its evaluation of Senegal’s long-term debt to Caa1 from B3, with a negative outlook, suggesting a potential further downgrade in the coming months.

Senegal is currently grappling with significant financial challenges, including a public debt that amounts to 119 percent of its GDP and a budget deficit of 14 percent. The IMF suspended a $1.8-billion credit line to the country last year after discovering distorted figures and fiscal mismanagement. The government, which attributes the suspect economic data to former President Macky Sall, is set to hold formal negotiations with the IMF to request new aid.

In response to the downgrade, Senegal’s finance ministry issued a statement arguing that Moody’s evaluation does not accurately reflect the country’s economic fundamentals or the public policy measures in place to stabilize the budget and reinforce debt sustainability. The ministry called on the ratings agency to demonstrate “more rigor, objectivity, and responsibility” in its assessments.

This is the second time this year that Moody’s has downgraded Senegal’s rating. The country’s government is working to address its financial challenges and secure new aid from the IMF. The outcome of the upcoming negotiations with the IMF will be crucial in determining Senegal’s ability to stabilize its finances and achieve economic growth.

The IMF’s support is essential for Senegal to implement its economic reform program and restore fiscal stability. The country’s ability to secure new aid will depend on its capacity to demonstrate a commitment to adhering to sound economic policies and addressing its debt challenges. As Senegal navigates its financial difficulties, the international community will be watching closely to see how the country responds to the current challenges and works towards achieving economic stability.