Fitch Ratings downgrades Cameroon sovereign credit rating

Fitch Ratings has downgraded Cameroon’s sovereign credit rating from ‘B’ to ‘B-’, citing political uncertainty and increased financing needs. The downgrade reflects growing risks associated with the upcoming presidential succession following the reelection of 93-year-old Paul Biya, as well as heightened tensions in public financing.

Despite a public debt level of approximately 42% to 44.3% of GDP—which remains below the median of comparable nations—the country is facing a crisis of confidence. This has resulted in record yields for Cameroon’s eurobonds, with the 2033 maturity reaching yields above 10.65%. Consequently, Cameroon is now paying higher interest rates to borrow on international markets than some neighboring countries with lower credit ratings.

Financial pressures are expected to rise as gross financing needs are projected to increase from 5% of GDP in 2025 to 7.3% in 2026. Additionally, the absence of a new program with the International Monetary Fund (IMF) following the expiration of the previous agreement in July 2025 has contributed to the market's cautious stance. In response to these developments, a delegation from Bank of America Securities recently met with Finance Minister Louis Paul Motaze.