S&P downgrade and Q2 bulletin signal higher restructuring risk for Mozambique’s 2031 Eurobond
On 28 September 2026 Mozambique’s Finance Ministry reported public debt at 75.9% of GDP driven by higher domestic borrowing, and S&P on 28/09/2026 downgraded Mozambique to CCC, flagging a rising probability that the 2031 Eurobond may need restructuring ahead of scheduled principal repayments.
The desk brief
On 28 September 2026 Mozambique’s Finance Ministry reported public debt at 75.9% of GDP driven by higher domestic borrowing, and S&P on 28/09/2026 downgraded Mozambique to CCC, flagging a rising probability that the 2031 Eurobond may need restructuring ahead of scheduled principal repayments.
Higher domestic financing and central-bank credit reduced foreign-currency buffers and increased servicing pressure, which rating agency S&P says raises the probability of a restructuring of Mozambique’s single outstanding Eurobond due 2031. This transmits to long-dated external debt as higher sovereign-credit risk premia and may constrain access to external financing until global creditors and the IMF clarify debt sustainability and financing paths.
Publication of the IMF debt sustainability analysis and any IMF financing decision tied to reforms and creditor engagement.
Sources & verification
Developing storyFurther independent confirmation is required.
- Mozambique: Public debt surpasses 75% of GDP in Q2, reaches 1.146 trillion meticaisclubofmozambique.comSource published (opens in a new tab)
- S&P Downgrades Mozambique to CCC Amid Debt Restructuring Risk • 360 Mozambique360mozambique.comSource published (opens in a new tab)
Public references supporting this brief.
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- Moz 31Sept 203194.31310.526%
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