S&P affirms Mozambique despite uncertainty

Standard & Poor’s said it affirmed the B- long-term and B short-term foreign- and local-currency sovereign credit ratings on the Republic of Mozambique.

The ratings also were removed from CreditWatch, where they were placed with negative implications in July, S&P said.

The outlook is negative.

Uncertainty regarding the September 2015 interest- and principal-payment by a public enterprise carrying a sovereign guarantee was the main reason behind the CreditWatch placement, the agency said.

The first principal payment due Sept. 11 and outstanding interest has been settled. Forthcoming debt-service payments, estimated at more than $200 million annually, are due in March and September each year until 2020, S&P said.

The government is still reviewing its options regarding the potential restructuring of the defaulted notes, possibly including reduced debt-service payments or extended terms, the agency said.

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