S&P lowers Mozambique

S&P said it lowered the long- and short-term foreign-currency sovereign credit ratings on the Republic of Mozambique to SD/D from CC/C.

The agency also said it revised the outlook on the long-term local-currency rating to stable from negative and affirmed the ratings at B- and B, respectively.

The sovereign ratings on the Republic of Mozambique are subject to certain publication restrictions and deviations from the announced calendar are allowed only in limited circumstances and must be accompanied by a detailed explanation of the reasons for the deviation, S&P explained.

In this case, the reason for the deviation is the missed payment by the government of Mozambique on the interest on its eurobond, which amounts to $59.8 million, the agency said. The payment was due Jan. 18, the agency added.

The next scheduled rating publication on the sovereign rating on the Republic of Mozambique will be Feb. 3, S&P noted.

The missed coupon pertains to the dollar-denominated fixed-rate notes issued by the Republic of Mozambique in April 2016 and due in 2023, the agency said.

The outlook revision to stable reflects a view that the country is meeting payments on its metical-denominated government debt, S&P said.

The agency also said it does not anticipate Mozambique will include local-currency debt in any upcoming restructuring or exchange offer.

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