Rating downgrades raise likelihood of Mozambique Eurobond (2031) restructuring

In September 2026 credit-rating downgrades by Moody’s (Sept. 19) and S&P (Sept. 28) pushed Mozambique deeper into junk territory and explicitly flagged a rising likelihood that the country may need to restructure its sole $900m eurobond maturing in 2031.

The downgrades signal heightened default/restructuring risk for Mozambique’s USD eurobond rather than an immediate payment failure. If markets price in higher sovereign credit risk, USD sovereign spreads could widen and borrowing costs rise; conversely, concrete IMF staff-level outcomes or lender engagement could ease pressures. Any restructuring would directly affect holders of the 2031 eurobond and Mozambique’s external financing options.

Publication of the IMF debt sustainability analysis and any IMF staff-level agreement or formal creditor engagement.