TEXT-S&P affirms Republic of Benin rtgs at 'B/B';outlook stable

(The following statement was released by the rating agency)

Dec 29 -

-- Following Benin's presidential and legislative elections in 2011, the political context is favorable for implementing needed structural reforms.

-- The economy is rebounding after two years of weak growth due to the global economic crisis and devastating floods in 2010.

-- Benin's fiscal debt burden is low, but we see a risk of fiscal slippage, because spending demands are increasing.

-- We are affirming our 'B/B' ratings on Benin.

-- The stable outlook balances our view of Benin's limited prosperity, and lack of monetary and fiscal flexibility with our expectation that Benin's government debt burden will not increase significantly over the medium term.

Standard & Poor's Ratings Services said today that it had affirmed its 'B' long-term and 'B' short-term sovereign credit ratings on the Republic of Benin. The outlook is stable.

The transfer and convertibility (T&C) assessment is 'BBB-'. The T&C assessment reflects our view of the likelihood that the Central Bank of West African States (BCEAO) would restrict access to foreign exchange needed for debt service.