Fitch Ratings upgrades Mozambique’s credit rating

10 July 2013

Fitch Ratings has upgraded Mozambique’s long-term credit rating in foreign currency from B to B+, while maintaining the national currency credit rating at B+, the agency indicated in a Monday press release.

The agency maintained the country’s outlook as “stable”, announcing that the rating upgrade reflects the fact that Mozambique continues to follow a prudent economic policy and remains committed to reforms, particularly regarding monetary and fiscal policies.

“These facts are reflected in a low inflation rate and a high growth rate, which in the last five years registered an average of 7.1 percent,” the press release states.

Fitch Ratings also mentioned the fact that coal extraction expanded over the last year. Exports of the mineral had increased from 0 percent of exports to 10 percent or US$435 million in 2011.

On the negative side the agency mentioned risks due to delayed infrastructure development, particularly in logistics, lower raw material prices in international markets and political violence in the country. (macauhub)