S&P downgrades Mozambique to CCC and flags rising restructuring risk for 2031 eurobond
On 28 September 2026 S&P lowered Mozambiques sovereign rating from CCC+ to CCC and said the probability that the government will need to restructure its sole outstanding eurobond due 2031 has increased, with an IMF debt-sustainability analysis set to be pivotal in deciding need for restructuring.
The desk brief
On 28 September 2026 S&P lowered Mozambiques sovereign rating from CCC+ to CCC and said the probability that the government will need to restructure its sole outstanding eurobond due 2031 has increased, with an IMF debt-sustainability analysis set to be pivotal in deciding need for restructuring.
The downgrade increases the likelihood of wider sovereign USD spreads and could raise borrowing costs for businesses tied to the sovereign, particularly gas/LNG-related corporates that rely on government FX support, guarantees or an IMF-backed adjustment. Any actual corporate spillover will depend on sovereign market access, official creditor decisions and IMF conditionality.
Publication of the IMF debt-sustainability analysis and any IMF financing or programme resumption decision (next decisive milestone).
Sources & verification
Developing storyFurther independent confirmation is required.
- S&P Downgrades Mozambique to CCC Amid Debt Restructuring Risk • 360 Mozambique360mozambique.comSource published (opens in a new tab)
- Moody's downgrades Mozambique's foreign-currency ratings to Caa3, maintains stable outlookclubofmozambique.comSource published (opens in a new tab)
Public references supporting this brief.
Price Discovery
Mozambique sovereign curve
Latest server-calculated mid yield by maturity. Points are observed Price Discovery levels, not an interpolated valuation curve.
- Moz 31Sept 203191.12511.415%
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