Maputo, Mozambique — 27 August 2012 – Standard and Poor’s (S&P) “’ known to investors worldwide as a leader of financial- market intelligence “’ has kept Mozambique’s long- and short-term debt ratings in foreign and national currency unchanged at “B+” and “B” with a stable outlook.
Macauhub News Agency reports that this was due to the Mozambique government improving the country’s economic management associated with growth in use of natural resources, and strong support from countries and institutions that provide financial aid to Mozambique.
However, it said that Mozambique’s debt rating, which was considered to have “junk” status, is the result of the country’s low level of development and its history of social conflicts following sharp price rises for basic goods and large tax and current account deficits.
“The stable outlook reflects the fact that the countries of the so-called programme aid will continue to partially fund the budget and foreign deficit, that economic growth will continue, and that the political situation will basically remain stable,” S&P’s statement said.
Source: Macauhub News Agency. For more information, click here.