August 5, 2016 / 4:15 PM / 3 years ago

BRIEF-S&P revises Mozambique sovereign credit outlook to negative

Aug 5 (Reuters) - S&P on Mozambique -

* Revises Mozambique sovereign credit outlook to negative

* Mozambique ‘CCC’ foreign currency and ‘B-‘ local currency ratings affirmed; off creditwatch negative; outlook negative

* Also estimate Mozambique’s general government debt to remain high at close to 90% of GDP

* Negative outlook signals that may view potential restructuring of MAM’s external loans as default by Mozambique central government

* Expect Mozambique’s net external liabilities will rise to nearly 10x current account receipts by 2019, from an already high 7x in 2015

* Now expect Mozambique will post a fiscal deficit after grants of 7% of gdp in 2016, before gradually declining to 4.5% of GDP by 2019

* Ratings reflect view of Mozambique’s currently weak macroeconomic fundamentals absent external financing and an imf policy anchor

* The possibility of an upgrade could emerge in 2017 if mozambique restores relations with the imf and its official creditors

* Mozambique also continues to be affected by internal political turbulence Source : bit.ly/2arDj1x

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below