Ivory Coast Wins Credit Upgrade as Cocoa Prices Soar

Ivory Coast, the world's largest cocoa producer, has received a credit rating upgrade from S&P Global Ratings, according to a report from Bloomberg.

The rating upgrade was boosted by soaring cocoa prices and rising exports. The move sees the West African nation inch closer to investment-grade status.

S&P raised Ivory Coast's rating to BB from BB-, putting it two levels from the coveted investment grade and aligning it with countries like the Dominican Republic and Brazil. The outlook for the nation's creditworthiness is stable.

The credit rating company cited strong economic growth and shrinking budget deficits, driven in part by the surge in export revenue. "We expect the budget deficit to reach 3% of GDP next year and the external deficit to narrow significantly due to higher cocoa prices and rising hydrocarbon and mining exports," S&P said in a statement released Friday.

The upcoming 2024-2025 cocoa harvest in Ivory Coast is expected to be 10% larger than previous estimates, per Bloomberg data. This, coupled with the sharp rise in cocoa prices over the past year, has significantly boosted the nation's earnings.

"Ivory Coast's dollar bonds maturing in 2033 inched lower this week to trade around 91.8 cents on the dollar," says Bloomberg.