S&P lowers Mozambique credit rating

The national flag of Mozambique. File picture: Grant Neuenburg

The national flag of Mozambique. File picture: Grant Neuenburg

Published Feb 14, 2014

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Sydney - Standard and Poor's Ratings Services lowered Mozambique's long-term foreign and local currency sovereign credit rating to B from B+ on Friday, with a stable outlook.

The ratings agency said the downgrade reflects Mozambique's higher fiscal deficits and faster debt accumulation compared with S&P's expectations.

“Mozambique's external commercial borrowing increased in 2013,” S&P said in a statement.

“We now estimate the average change in general government debt will be a high of 8.8 percent of GDP over 2014-2017, compared with 4 percent over 2010-2013.” - Reuters

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