S&P Global Ratings announced on January 23 that it has lifted the 'negative watch' placed on Madagascar since October 2025, after the country's political instability following a coup. The agency has maintained the country's rating at B-, signaling confidence in the government's ability to manage its debts amid precarious conditions. This development is seen as an indicator of administrative continuity, which is crucial for stabilization in the region.

The 'negative watch' designation was initially applied due to serious market concerns regarding a potential default on payments. Only three months later, with the situation having improved somewhat, this worst-case scenario has been averted. The ability of the government to meet its debt obligations has been a positive sign for investors, showing some resilience in Madagascar's financial governance despite a significant regime change and existing uncertainties in the institution.

While the credit rating remains at B-, which is considered below investment grade, the shift from a negative outlook to a stable one suggests a cautious optimism among credit analysts regarding future developments. This change may improve Madagascar's appeal to investors and help stabilize the economy as it navigates through its challenges, particularly in relation to governance and economic performance post-coup.