Moody’s changes Mozambique view

Moody's Investors Service said it changed the outlook on Mozambique's long-term issuer ratings to stable from negative and affirmed the Caa3 issuer and senior unsecured debt ratings.

The agency said the action primarily reflects Moody's expectation that in the restructuring of Mozambique's sole outstanding international bond currently under negotiation, bondholders will likely incur losses as defined by the agency consistent with a Caa3 rating.

“Taking into account the inherent uncertainty surrounding the timing and final terms of the restructuring, the risks around the size of the eventual losses are broadly balanced,” the agency said in a news release.

All Mozambique's country ceilings are unchanged.

The long-term foreign currency bond ceiling remains at Caa2, the long-term foreign-currency bank deposit ceiling at Caa3, and the local-currency bonds and deposits ceilings at Caa1.

The foreign-currency short-term bond and bank deposit ceilings remain at Not Prime.

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