Fitch Ratings keeps “B+” long-term credit rating for Mozambique

10 November 2014

Fitch Ratings has kept its credit rating on Mozambique’s long-term debt in foreign and local currency at ‘B +’ with a stable outlook, according to a statement issued Friday.

The rating on short-term debt in foreign currency was also kept, but at “B”.

Keeping Mozambique’s credit rating unchanged is based on expected growth of 8 percent in 2015 and 2016, one of the highest rates in Africa, as well as the fact that the country will continue to benefit from high levels of investment in infrastructure and the development of extractive industries, especially natural gas.

The agency expects inflation this year to remain at around 3 percent due to prudent monetary policy and the stability of exchange rates, although risks may arise due to the government’s persistently high budget deficits and anticipating income from the exploration of natural resources, which is as yet uncertain.

The statements contained in this report from Fitch Ratings are based on two fundamental assumptions – that the development of infrastructure will enable the expansion of coal mining and the exploration of natural gas and that the country does not return to a situation of armed conflict. (macauhub/MZ)