Moody’s upgraded Tunisia’s outlook to stable from negative while affirming the Caa2 ratings for both foreign-currency and local-currency issuer ratings. This adjustment reflects Moody’s expectation that Tunisia’s government pressures will stabilize at levels consistent with a Caa2 rating. Similarly, the central bank’s outlook adjusted due to a reduction in the current account deficit and the resilience of its FX reserves, which are crucial for managing external debt obligations. However, uncertainties around financing, high fiscal deficits, and a challenging debt maturity profile persist.