S&P downgrades Mozambique foreign‑currency rating to CCC, flags rising Eurobond restructuring risk
On 25 September 2026 S&P Global Ratings lowered Mozambique's long‑term foreign‑currency sovereign rating to CCC with a negative outlook, saying the likelihood of a distressed restructuring of the country's sole outstanding Eurobond (2031 maturity) has risen amid fiscal and FX liquidity pressures.
The desk brief
On 25 September 2026 S&P Global Ratings lowered Mozambique's long‑term foreign‑currency sovereign rating to CCC with a negative outlook, saying the likelihood of a distressed restructuring of the country's sole outstanding Eurobond (2031 maturity) has risen amid fiscal and FX liquidity pressures.
The downgrade formally raises credit risk for holders of Mozambique's external debt and may widen secondary premia on the 2031 Eurobond and other USD‑denominated sovereign or quasi‑sovereign paper. Impact depends on investor positioning, secondary liquidity and whether the IMF debt‑sustainability work prompts a pre‑2028 restructuring; higher sovereign risk could also constrain new external issuance.
Publication of the IMF debt‑sustainability analysis and any official restructuring timetable ahead of March 2028 principal repayments.
Sources & verification
Developing storyFurther independent confirmation is required.
- On September 25, 2026, S&P Global Ratings downgraded Foreign Currency LT credit rating of Mozambique tocbonds.comSource published (opens in a new tab)
- S&P lowers Mozambique foreign currency rating to 'CCC', outlook negativesquawknews.comSource published (opens in a new tab)
Public references supporting this brief.
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- Moz 31Sept 203191.12511.415%
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