Cape Verde’s Ministry of Finance published an update noting that S&P Global Ratings upgraded the country’s long-term sovereign credit ratings in foreign and local currency to B+ from B, affirmed the short-term rating at B, and assigned a positive outlook. S&P also raised its transfer and convertibility assessment to BB from BB-. The upgrade was linked to stronger fiscal and external performance supported by tourism and remittances, with S&P expecting general government primary surpluses (excluding interest) over the next three years and further reductions in the public-debt-to-GDP ratio. The update highlighted rising gross foreign exchange reserves to above EUR 1 billion, reaching about USD 1.2 billion at end-2025 versus around USD 770 million at end-2024, alongside current account surpluses in 2024 and 2025; it also referenced the adoption of a new Organic Law for the Bank of Cabo Verde that strengthens its price stability mandate and regulatory authority. Additional metrics cited included an estimated 2025 fiscal surplus of 0.3% of GDP, non-performing loans of 7.7% in September 2025, and projected average inflation of 2.2% for 2026–2029 under the euro peg. S&P indicated the rating could be raised again within 12 months if external or fiscal performance exceeds its base case or if clearer evidence emerges of the central bank’s ability to align domestic monetary conditions with the fixed exchange-rate regime, while warning that materially weaker tourism receipts, adverse terms-of-trade shocks, or a slowdown in fiscal consolidation that lifts debt could lead to downward pressure.

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