Fitch raises Mozambique

Fitch Ratings said it upgraded Mozambique’s long-term foreign-currency issuer default rating to CCC from RD and long-term local-currency IDR to CCC from CC.

“The upgrade of Mozambique’s long-term foreign-currency IDR reflects the curing of the restricted default following the completed restructuring of its sole eurobond (MOZAM – $726.5 million, 10½%, maturing in 2023), which had been in default since January 2017,” said Fitch in a press release.

The eurobond was exchanged for a new $900 million bond due 2031 with a coupon of 5% until 2023 and then 9% until maturity. The government also made an upfront payment of $40 million to bondholders.

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