Credit rating agency Standard and Poor’s (S&P) lowered its outlook on Mozambique’s economy from stable to negative, according to a statement issued Friday.
S&P’s explanation for this downward review is that data showed that Mozambique’s current account deficit is bigger than previously estimated.
The agency maintained its “B+” rating on long term debt and “B” on short term debt issued in both national and foreign, but warned it may lower those ratings in future.
“The negative outlook reflects the possibility that we could downgrade Mozambique within the next year if progress on big investment projects slows, if projects seem less likely to generate the growth needed to narrow external and fiscal deficits, or if there is a material increase in public sector external commercial debt,” S&P said. (macauhub)