S&P Global Ratings raised its outlook on Senegal to positive from stable and affirmed its B+/B long-term and short-term foreign and local currency sovereign credit ratings.

The rating agency said it expects the African nation's real GDP growth to remain strong from 2018 to 2021 and average 7% per year by 2021. Senegal's real GDP growth nearly doubled to 7.0% in 2017 from an average of about 3.5% in 2011 to 2014. S&P said the growth figure is one of the highest numbers in the developing world in per capita terms.

S&P also cited the government's commitment to lowering Senegal's fiscal deficit toward 3.0% of GDP next year and reducing below-the-line financing under the criterion established by the West African Economic and Monetary Union.

The rating agency said it could raise Senegal's ratings over the next 12 months if economic growth remains in line with its expectations, net government borrowing declines toward 3% of GDP by 2019 and Senegal increases its ratio of general government tax revenues to GDP.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.