S&P Global Ratings cut Senegal’s credit score further into junk territory, saying a distressed debt exchange or default on the country’s foreign-currency commercial debt is “extremely likely” after the government launched a plan to restructure its obligations.

The West African nation’s sovereign rating was downgraded to CC from CCC+ on Friday, with a negative outlook. Earlier this week, the Senegalese government said it would move forward with a “debt treatment” under the Group of 20’s Common Framework that excludes debt denominated in CFA francs. It also reached a staff-level agreement with the International Monetary Fund on a new $2.2 billion program.

“The ongoing debt renegotiation will result in foreign currency creditors receiving less than originally promised, whether through a reduction in principal, interest, or payment terms,” S&P said in a statement.

“At the same time, given the sizable stock of local currency debt, we believe there are challenges to excluding domestic debt from any deal, raising the possibility that local currency debt could ultimately be included in a restructuring,” analysts said. Senegal’s debt already trades in distressed territory in global markets, and eurobonds took a hit after the debt-treatment announcement.