Browsing: S&P

• Mozambique political unrest has caused losses of nearly $390 million, or 2.2 per cent of the gross domestic product.
• According to S&P Global Ratings, this situation has escalated the already high risks that the government will meet its domestic debt obligations.
• The ongoing post-election unrest continues unabated, and any currency devaluation is likely to exacerbate inflation and risk further destabilization.

Mozambique Political Unrest

Since last month’s disputed elections, deadly protests have rocked Mozambique’s economy. According to S&P Global Ratings, this situation has escalated the already high risks that the government will meet its domestic debt obligations.

The company lowered its assessment of the gas-rich nation’s local currency debt to CCC on 18 October before widespread political unrest shut down large parts of the economy. This situation will squeeze the government’s already tight finances, S&P analyst Leon Bezuidenhout said.

“Unless there’s some type of sharp fiscal adjustment or windfall revenue, they …