The Fitch Ratings agency decided on Friday to maintain Mozambique’s rating at CCC+, three levels above Default but still below the investment recommendation, considering that “substantial risks” remain, such as high public debt. Mozambique’s rating thus remains unchanged, as in the assessment of 9 February, and “reflects high levels of public debt, weak public finance management, low GDP per capita, weak external finances, weak governance indicators and a challenging security situation”, write Fitch Ratings analysts, in the note consulted by Lusa. They also recognize, as in previous assessments, “robust medium-term growth prospects”, which are “supported by the development of the liquefied natural gas (LNG) sector, or by the three-year Extended Credit Facility agreement of US$456 million (EUR 417 million) signed with the International Monetary Fund in 2022 and in force. Fitch does not assign an economic evolution outlook, known as ‘outlook’, to countries that have a CCC rating, the third above Financial Default, or ‘default’. In the analysis, Fitch revises downwards the forecast for Mozambique’s economic growth to 4.0 percent of Gross Domestic Product (GDP) this year (4.5 percent in the previous assessment) and 4.2 percent in 2025 (4.5 percent previously), which compares with an expansion of 5.9 percent in the year past. The slowdown in growth compared to 2023 reflects “above all a lower contribution from Eni’s floating LNG platform (Coral Sul)”, which was already approaching maximum production capacity last year. (Lusa) Source: Carta de Moçambique
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