Fitch lowers Mozambique

Fitch Ratings said it downgraded Mozambique's long-term foreign-currency issuer default rating to RD (restricted default) from CC and affirmed the long-term local-currency issuer default rating at CC.

The long-term issuer default ratings do not have an outlook.

The short-term foreign- and local-currency issuer default ratings were affirmed at C, along with the country ceiling at B-.

The downgrades follow the confirmation that the country failed to make a capital and coupon payment due May 23, 2016 on the $535 million loan to state-owned enterprise Mozambique Asset Management, Fitch explained.

The curing of the default, such as through a debt restructuring leading to a normalization of relations with its creditors could lead to an upgrade, the agency said.

Fitch said it plans to review the ratings of Mozambique and upgrade the ratings to a level consistent with the sovereign's ability and willingness to service debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.