Mozambique - 02

Mozambique: EMATUM Episode Impacts Mozambique’s Credit Rating

Doubts regarding the financial viability of state-owned EMATUM and talk of a debt restructuring resulted in S&P downgrading Mozambique’s long-term credit rating from “B” to “B-” on 6 July and placing the country’s short-term rating on credit watch with negative implications. S&P’s decision was principally in response to Minister for Finance and Economy Adriano Maleiane exploring options for restructuring the company’s debt with the aim of reduced debt service payments. Given that the company is backed by a sovereign guarantee, a default could also be seen as a sovereign default.

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