Moody’s Investors Service slashed Ethiopia’s sovereign credit rating to Caa1 from B2 and placed the debt grade on review for further downgrade on May 17th 2021, citing a rising risk that private creditors were in line for losses as the country pushes to overhaul its debt burden. The agency noted that there has been little progress since Ethiopia's 1 February announcement that it intended to seek debt treatment under the G20 Common Framework designed to help governments to overhaul the debt they owe to official and commercial creditors and that spiralled amid the Covid-19 pandemic. Standard & Poor's credit rating for Ethiopia stands at B- with negative watch outlook. Fitch's credit rating for Ethiopia was last reported at CCC with n/a outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Ethiopia thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for Ethiopia as reported by major credit rating agencies.