Moody’s is warning that the application of economic sanctions to Niger by its neighbors and its Western partners, after the military coup last week which displaced the nation’s leaders, could cause the the African country to default on its debt.

Last week, the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU) imposed economic restrictions on the government of Niger which included suspending all commercial and financial transactions, as well as the freezing of all of the assets of the nation in ECOWAS central banks, as well as commercial lenders. Niger also saw all regional development bank financial assistance halted.

Internationally, national donors, such as the EU and France paused all financial support and security cooperation. In addition the African Union and the United States threatened to do so as well if a constitutional order is not restored soon.

On Wednesday, Moody’s downgraded Niger’s long-term foreign and local currency issuer ratings from B3 (judged to have speculative elements and a significant credit risk) to Caa2 (rated as poor quality and very high credit risk), as it put them under a review for a further downgrade.

Moody’s warned in a press release in which it announced its downgrades that if the present sanctions are continued, they, “will likely prevent Niger from making upcoming principal or interest payments to creditors outside the country which would constitute a default under Moody’s definition.”

Roughly 80 percent of the outstanding currency debt of Niger is being held by other African nations.

Niger, as one of the poorest nations in the world, receives almost $2 billion per year in development aid.

However the nation has a wealth of natural resources, ranging from uranium, to coal, gold, iron ore, petroleum, molybdenum and salt. Presently it is the seventh biggest producer of uranium in the world.