Mozambique: Standard and Poor’s raises credit rating

27 December 2007

London, United Kingdom, 27 Dec – Standard and Poor’s Ratings Services has raised its credit rating for Mozambique, improving the country’s access to the international finance market.

The new rating is justified by a “history of strong GDP growth since 2000, sustained by major investment in mega-projects, particularly in the raw materials and mining sectors,” said S&P.

Maputo’s performance, which has relied on support from the international community, “has helped reduce poverty and improve social indicators,” added the ratings agency.

S&P has raised its rating for Mozambique from B to B+, meaning the country is vulnerable to adverse business, finance and economic conditions but capable of meeting its financial commitments and with positive trends. The short-term rating for Mozambique remains at B, a classification with the same criteria minus the positive trends.

Prospects for evolution of both indicators are “stable”, says S&P. The forecasts are made on the expectation of continued strong economic growth and a sustained impetus from economic and fiscal reforms, which contribute to maintaining broad donor support. (macauhub)