The Zambian Watchdog has observed, however, that MOODY's latest rating of Zambia has angered the ruling PF, which immediately claimed that they do not recognize Moody’s, one of the three biggest and known international credit rating agencies.
Chileshe Kandeta, the spokesperson for the PF ministry of Finance said that the rating of Zambia by Moody’s Investors Service, should be ignored because the grading is unsolicited and against best practice.
Kandeta said that his PF regime only knows Standard & Poors and Fitch.
But on July 1, 2015, the same Standard & Poor’s also cut Zambia’s credit rating deeper into junk as it forecast the PF government would post a budget deficit far worse than previously estimated, adding to its debt burden.
The rating was lowered to B, five levels below investment grade, from B+, with the outlook changed to stable from negative.
“Zambia’s fiscal position is markedly and negatively deviating from our previous expectations,” S&P said. “Financing this deficit will lead to increased external indebtedness and higher related interest costs.”