Moody's moves Mozambique view to positive

Moody's Investors Service said it changed the government of Mozambique's outlook to positive from stable and affirmed its long-term issuer and senior unsecured debt ratings at Caa2.

“The drivers of the positive outlook include prospects of broad-based improvements in Mozambique credit's profile led by liquified natural gas (LNG) production and the government's efforts to strengthen public governance, which may improve over time policy effectiveness from currently very weak levels. The next 12-18 months will be pivotal for Moody's assessment of the extent to which LNG production levels and government's management of future revenues will lead to sustainable improvements in the sovereign's economic and fiscal strength,” the agency said in a press release.

Moody’s said it affirmed the Caa2 rating because it sees continuing credit weaknesses implying a still-high risk of default.

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