(Ecofin Agency) - Benin received a credit rating boost from Standard and Poor's (S&P) after its successful issuance of $750 million in international bonds in February, signaling growing confidence from global investors.

S&P upgraded Benin's credit rating from "B+" to "BB-" with a "stable" outlook, according to an April 22 statement from the Beninese government.

With this rating upgrade, the U.S. agency hailed Benin's economic, budgetary, and financial progress despite regional instability, highlighting the country's robust economic momentum. The economy there surged by 6.4% in 2023, exceeding expectations, with favorable projections extending to 2027. These optimistic forecasts are underpinned by solid economic policies and effective implementation of the Government Action Program (PAG), S&P noted. The expansion of the Cotonou port and the development of the Glo Djigbé economic zone were also cited for their contributions to Benin's structural economic transformation.

This credit rating upgrade comes two months after Benin's successful debut issuance of international bonds denominated in US dollars. The $750 million raised for a 14-year maturity bolsters the country's credibility among international lenders, according to the agency. These funds will play a critical role in financing Benin's needs for 2024 while maintaining the quality of its public debt portfolio.

Benin's new credit rating places it among the top credits in sub-Saharan Africa, ranking just below Botswana and alongside South Africa and Côte d'Ivoire.