"\u00a0S&P Assigns Inaugural Rating of B+ With Stable Outlook to Guinea"

" \u00a0S&P Assigns Inaugural Rating of B+ With Stable Outlook to Guinea \r\n\r\n The international financial rating agency Standard & Poor\u2019s (S&P) has assigned the\u00a0 Republic of Guinea an inaugural rating of \u201cB+\u201d with a \u201cStable\u201d outlook. This decision reflects the strength of the country\u2019s economic fundamentals, strong growth prospects driven by the integrated mining and infrastructure Simandou project,\u00a0 and the rigor in public financial management. It places Guinea above the continental average and makes it the\u00a0 third-best-rated economy in West Africa. This rating is also an essential prerequisite for the implementation of the Simandou 2040\u00a0 Program, as it facilitates Guinea\u2019s access to international financing.\r\n\r\n \u201cThe attribution of the B+ rating marks a new beginning for Guinea. It demonstrates that our reforms are bearing fruit and that the Guinean State is now a reliable partner and an emerging destination for international investors,\u201d stated Mr. Djiba\u00a0 Diakit\u00e9, Minister, Chief of Staff to the President of the Republic, and Chairman of the Simandou Strategic Committee.\u00a0 \r\n\r\n The S&P report highlights particularly dynamic growth prospects, based notably on the performance of the mining sector.\u00a0 Guinea is already among the world leaders in bauxite (world #1) and gold, and is preparing to occupy a leading position in iron ore with the imminent launch of the Simandou project, expected to become the world\u2019s largest iron mine. This deposit stands out for its high-grade ore (65%), which is set to contribute to the decarbonization of global industry and the world economy. According to S&P, between 2026 and 2028, Guinea could experience GDP growth of nearly 10%\u00a0 per year, far exceeding the regional average.\u00a0 \r\n\r\n S&P also emphasized the structural transformation efforts undertaken by the Guinean authorities. The agency commends the priority given to local value addition and underlines that infrastructure investments linked to Simandou will generate positive spillovers across the entire economy. This integrated approach, formalized within the framework of the Simandou 2040 Socio-Economic Program, reflects, in its view, the authorities\u2019 determination to diversify the economy,\u00a0 modernize institutions, promote local content, and strengthen human capital, notably through the \u201cSimandou Academy\u201d\u00a0 initiative.\u00a0 \r\n\r\n On the fiscal front, S&P positively notes the country\u2019s demonstrated budgetary discipline. The public deficit is projected to remain below 3% of GDP over the 2025-2028 period, supported by higher revenues and the digitalization of the tax administration. Public debt, which stood at 44% of GDP in December 2024, benefits from a favorable structure with long maturities and controlled rates. Inflation has sharply declined, falling from 11% (2020\u20132022) to around 3.5% currently.\u00a0 S&P also highlights Guinea\u2019s strong international partnerships, both with multilateral donors and the private sector.\u00a0 Ongoing discussions with the International Monetary Fund (IMF) for a new program are seen as a factor of stability and confidence.\u00a0 \r\n\r\n Furthermore, Guinea has recently completed a GDP rebasing exercise. This work, led by the National Institute of\u00a0 Statistics with the support, among others, of AFRISTAT, the IMF, the World Bank, and the African Development Bank,\u00a0 allows for better accounting of previously under- or unmeasured sectors. Nominal GDP was revised upward by about\u00a0 50%, to USD 36.3 billion in 2024, making Guinea the second-largest economy in Francophone West Africa 1 , with a revised lower debt ratio (30.5% in December 2024). These rebased GDP statistics will be integrated by S&P in their analyses as of their next rating review.\u00a0 \r\n\r\n \u201cThe Guinean State welcomes this inaugural rating, which constitutes a decisive milestone in the rollout of the Simandou\u00a0 2040 program. This rebasing also provides us with a solid foundation to better plan, better invest, and enhance Guinea\u2019s attractiveness to investors. These elements will enable the Republic of Guinea to mobilize the international financing needed to carry out its strategic projects and thereby accelerate the country\u2019s economic transformation for the benefit of the entire population,\u201d declared Mr. Djiba Diakit\u00e9.\u00a0 "

"\u00a0S&P Assigns Inaugural Rating of B+ With Stable Outlook to Guinea"

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