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Prospect News home > News index > List of issuers M > Headlines for Mozambique > News item |
Fitch lowers Mozambique
Fitch Ratings said it downgraded Mozambique's long-term foreign-currency issuer default rating to RD (restricted default) from CC and affirmed the long-term local-currency issuer default rating at CC.
The long-term issuer default ratings do not have an outlook.
The short-term foreign- and local-currency issuer default ratings were affirmed at C, along with the country ceiling at B-.
The downgrades follow the confirmation that the country failed to make a capital and coupon payment due May 23, 2016 on the $535 million loan to state-owned enterprise Mozambique Asset Management, Fitch explained.
The curing of the default, such as through a debt restructuring leading to a normalization of relations with its creditors could lead to an upgrade, the agency said.
Fitch said it plans to review the ratings of Mozambique and upgrade the ratings to a level consistent with the sovereign's ability and willingness to service debt.
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