Fitch Ratings keeps Mozambique’s credit rating at “B”

22 March 2016

Fitch Ratings kept its credit rating on Mozambique’s long term debt in local and foreign currency at “B” and removed the ratings from credit watch, the agency said in a statement issued Monday.

The agency said, however, that the outlook was negative.

Fitch said it had removed the credit ratings from the credit watch list last week following the announcement, on 17 March, of the proposal to restructure the debt issued by Mozambican tuna company Ematum.

The assignment of a negative outlook illustrates the deterioration of some indicators, such as the price of raw materials whose fall has affected Mozambique, particularly with regard to capital inflows.

Foreign direct investment, which is a way for the government to finance the large current account deficit, fell by nearly 10 percentage points in 2015 to 19.5 percent of gross domestic product (GDP).

Last week Moody’s and Standard & Poor’s lowered their credit ratings on Mozambique, from “B2” to “B3” and “B-” to “CC”, respectively. (macauhub/MZ)