WASHINGTON, Nov 15, 2025 (BSS/AFP) - S&P Global on Friday downgraded Senegal's long-term foreign currency rating, citing a precarious debt position that leaves the West African nation struggling to meet massive repayment obligations.

The downgrade to 'CCC+' from 'B-' comes after authorities revealed that Senegal's government debt stood at 119 percent of GDP as of December 2024 -- more than 40 percentage points higher than previously reported.

The rating hit comes as Senegal is embroiled in a political feud between the president, Bassirou Dioumaye Faye, and his prime minister and former mentor Ousmane Sonko, further destabilizing the country.

"Public finances remain precarious, particularly in the absence of a comprehensive official support program," S&P said in a statement, placing the rating on CreditWatch, meaning it could be lowered again.

The agency warned that Senegal faces "elevated" borrowing needs for 2026, with approximately $4.6 billion in external debt service due, including $1.8 billion in commercial debt.

The crisis was triggered when widespread debt underreporting and fiscal mismanagement under the previous government of Macky Sall came to light, leading to the suspension of a $1.8 billion IMF program in October 2024.

Negotiations for a new IMF arrangement began in late October, but S&P said "visibility on both the potential outcomes and associated conditions remains limited."

Senegal has been able to continue financing itself largely through the regional bond market, but this comes at higher costs than loans from international financial institutions, development banks or governments, the ratings agency noted.

The government of Prime Minister Sonko has pledged to slash the budget deficit to three percent by 2027 from 12.6 percent in 2024, introducing new taxes on mobile money, online gaming, tobacco and alcohol.

However, S&P projects the deficit will remain elevated at 8.1 percent in 2026 -- well above government targets.