Moody’s Investors Service has raised Angola’s credit rating for the first time based on improved governance and debt metrics.
Angola’s Eurobonds surged after the rerating to B3 from Caa1. Bloomberg states that it is the first time Moody’s has increased the rating since its initial evaluation in 2015.
The news supports Pensana’s ambitions for its state-of-the-art Longonjo rare earth project.
Longonjo is primed to become a critical source of supply for the Company’s Saltend separation hub in Humber Freeport, which will enable offshore wind and electric vehicle end-users investing in the green industrial revolution.
Earlier this year, Angola’s President Lourenço told international media that he hopes for Longonjo to be the flagship achievement of his mining reforms. Angola’s sovereign wealth fund remains Pensana’s largest shareholder.
The rerating follows events in June 2021 when the International Monetary Fund (IMF) provided US$772 million to Angola. The IMF has stated that it expects the nation’s US$62 billion economy to expand for the first time in recent years.
Moody’s stated: “Stronger governance, in particular in the quality of the country’s executive and legislative institutions, albeit from weak levels, is reflected in various aspects of the credit profile.”