Fitch revised the Outlook on Angola’s rating to Stable from Positive while affirming the IDR at B-. The revised outlook reflects weaker economic growth prospects, higher anticipated inflation, and government debt/GDP due to a depreciation of the Angolan kwanza. The kwanza declined by 30% YoY in June, mainly due to a substantial reduction in USD in the domestic FX market, which was influenced by the absence of FX sales by the Angolan Treasury in April and May 2023, a significant departure from the average monthly sales of USD 438 mln between Q1 2022 and Q1 2023. Contributing factors include an unexpected 11% YoY drop in oil production in Q1 2023, lower Brent oil prices, and increased external amortizations in 2023.