Fitch Affirms Mozambique at 'CCC'

Fitch Ratings has affirmed Mozambique's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. The 'CCC' rating reflects limited financing options combined with high fiscal and external financing needs that have been exacerbated by the coronavirus shock, high general government (GG) debt and ongoing unresolved public-sector debt liabilities, Fitch Ratings reported. Fitch expects real GDP to contract by 1% in 2020, after muted GDP growth in 2019 of 2.2% due to the damage caused by two cyclones. The projected contraction reflects our expectation that moderate growth in the agricultural sector will have only partially offset weak performance in the extractive sector, affected by lower prices and demand for Mozambique's mining exports. Read more