S&P downgrades Mozambique rating as Moody’s improves Angola outlook

Standard & Poor’s (S&P) has downgraded Mozambique’s credit rating from CCC+ to CCC, citing an increasing likelihood that the country will need to restructure its external public debt. The agency noted that strong budgetary and exchange rate liquidity pressures are raising the probability of a restructuring of its sole Eurobond, which matures in 2031. While long-term prospects remain positive due to anticipated liquefied natural gas projects, S&P indicated that significant fiscal benefits are not expected until after 2030.

In contrast, Moody’s has upgraded the outlook for Angola from ‘stable’ to ‘positive,’ while maintaining its B3 rating. The agency cited an emerging history of macroeconomic stability, characterized by reducing public debt and lower interest costs. Despite a persistent dependence on oil, Moody’s expects Angola’s public debt to decline to approximately 46% of GDP by the end of 2026.