Breaking -Standard & Poors revises Mozambique sovereign credit outlook to negative

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7:34 CAT | 05 Aug 2016

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 :

Source: Reuters

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