Uncertainty Dents Ratings

July 2008 | Ratings Update

We have lowered our short-term political risk rating for Zambia to 65.6 from 68.1 and our long-term political risk rating to 52.0 from 56.0 on the back of uncertainty surrounding President Levy Mwanawasa's stroke. For both scores, we have lowered the policy continuity sub-component of our scores, to 45.0 out of 100.0 from 60.0 in our short-term ratings, and 50.0 from 70.0 in our long-term ratings. While the prospects of a governmental collapse are very distant, the opposition Patriotic Front, which has populist policies significantly different from the present government's, could do well in an election, especially if infighting in

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