Ratings agency S&P Global downgraded Ethiopia's sovereign rating to 'CCC+' from 'B-' on Friday, portraying the increasing pressure on the availability of external funding.
Heightened political instability due to the ongoing war in north Ethiopia and delays to debt restructuring are cited as major reasons for the downgrading.
S&P expects the country's domestic markets to play an increasingly dominant role in financing Ethiopia's budget deficit over the agency's forecast through 2024.
Last week, the IMF announced the expiry of a 1.5 billion dollar concessional loan facility approved to Ethiopia following the country's failure to complete its debt reworks within 18 months.
