Moody’s and S&P downgrade Mozambique and flag rising restructuring risk for 2031 eurobond
On Sept. 18, 2026 Moody’s cut Mozambique’s foreign‑currency long‑term rating to Caa3 and on Sept. 28, 2026 S&P lowered its sovereign rating to CCC, with both agencies warning that pressures increase the probability of a restructuring of Mozambique’s sole outstanding US$900m eurobond due 2031.
The desk brief
On Sept. 18, 2026 Moody’s cut Mozambique’s foreign‑currency long‑term rating to Caa3 and on Sept. 28, 2026 S&P lowered its sovereign rating to CCC, with both agencies warning that pressures increase the probability of a restructuring of Mozambique’s sole outstanding US$900m eurobond due 2031.
The downgrades concentrate credit and restructuring risk on the long‑dated 2031 eurobond, raising the likelihood investors demand higher premia and causing episodic liquidity squeezes for long‑dated frontier sovereign debt and Mozambique‑linked corporates. Any market reaction will depend on investor assessment of the timing and size of external financing gaps and the outcome of IMF debt‑sustainability analysis.
Publication of the IMF debt‑sustainability analysis and any announcement on IMF programme resumption or explicit restructuring talks before March 2028.
Sources & verification
Verified briefSupported by 3 independent publishers.
- On September 18, 2026, Moody's Investors Service downgraded LT- foreign currency credit rating of Mozambique tocbonds.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)
- 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.
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- Moz 31Sept 203191.12511.415%
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