{"id":38847,"date":"2023-05-17T11:45:10","date_gmt":"2023-05-17T11:45:10","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management"},"modified":"2023-05-17T12:10:03","modified_gmt":"2023-05-17T12:10:03","slug":"rating-can-rise-only-with-improvement-in-debt-management","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management","title":{"rendered":"Rating can rise only with improvement in debt management"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>Financial ratings agency Fitch Ratings said on Thursday that further improvements and confidence in the management of Mozambique\u2019s public finances are needed before the view on sovereign credit quality can improve.<\/p>\n

\u201cDevelopments in the hydrocarbon sector and reforms with the International Monetary Fund (IMF) seal of approval are important, and there has been more external financing, but the momentum is less positive than in Angola because [the fruits] are more for the future,\u201d said the Head of Middle East and African Sovereigns at Fitch Ratings.<\/p>\n

In a webinar on the evolution of African economies,Toby Iles pointed to the \u201cvolatility in the domestic debt market\u201d and added that \u201cthis is a question of management, more than liquidity,\u201d stressing, \u201cWe want to have more confidence in that before we change Mozambique\u2019s rating.\u201d<\/p>\n

In November last year, Lusa reported that Mozambique was paying late on some domestic treasury bond coupons.<\/p>\n

\u201cMarket participants report occasional delays in the payment of the coupons,\u201d said A\u0301lvaro Piris, head of the IMF mission in Mozambique, when asked about the delay of around two weeks in the payment of coupons on 14 November last year.<\/p>\n

Fitch in February maintained its \u2018CCC+\u2019 rating for sovereign debt issued by Mozambique, noting that maintaining the opinion below investment grade, and just one step above financial default, \u201creflects the government\u2019s high debt levels, large budget deficits, unresolved public company debt problems, low \u2018per capita\u2019 GDP, weak governance indicators and a challenging security situation.\u201d<\/p>\n

READ: Fitch affirms Mozambique at \u2018CCC+\u2019<\/b><\/p>\n

Fitch Ratings, owned by the same owners of consultancy Fitch Solutions, analyses 22 countries in Africa, 19 of which are in sub-Saharan Africa, and of these, almost half, or 45%, have a CCC rating or are in financial default, which highlights the \u201csignificant levels of credit risk in the region\u201d.<\/p>\n

At today\u2019s conference, the analysts stressed that although 2023 is not a very heavy year in terms of sovereign debt maturity, the next two years will be difficult for a good part of the countries, which face the end of the term of the loans, and will therefore have to pay back in full what they have borrowed or issued in the international financial markets.<\/p>\n

\u201cIn 2024 there will be more financial pressure on countries, with Kenya, Egypt and Ethiopia having to pay back more than $2 billion each, and 2025 will be even more difficult, with several countries facing debt maturity,\u201d the analyst warned.<\/p>\n

Asked how African countries are coping with rising interest rates and the impacts of rising oil prices and inflation, notably food prices, Toby Iles stressed the importance of fiscal consolidation.<\/p>\n

\u201cFiscal consolidation is crucial, they are trying to unlock the mechanisms to increase domestic revenue mobilisation, which is very difficult historically, and they are more focused on managing public finances while trying to maintain and even accelerate economic growth,\u201d he said, stressing that \u201cthe other option is restructuring\u201d debt.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. Financial ratings agency Fitch Ratings said on Thursday that further improvements and confidence in the management of Mozambique\u2019s public finances are needed before the view on sovereign credit quality can improve. \u201cDevelopments in the hydrocarbon sector and reforms with the International Monetary Fund (IMF) seal of approval are important, and there has […]<\/p>\n","protected":false},"author":84,"featured_media":38846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[233,281,283],"class_list":["post-38847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nRating can rise only with improvement in debt management - Mozambique<\/title>\n<meta name=\"description\" content=\"Financial ratings agency Fitch Ratings said on Thursday that further improvements and confidence in the management of Mo ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rating can rise only with improvement in debt management\" \/>\n<meta property=\"og:description\" content=\"Financial ratings agency Fitch Ratings said on Thursday that further improvements and confidence in the management of Mo ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\" \/>\n<meta property=\"og:site_name\" content=\"Mozambique\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-17T11:45:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-17T12:10:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2023\/05\/postQueueImg_1684307726.53.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"775\" \/>\n\t<meta property=\"og:image:height\" content=\"529\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Rating can rise only with improvement in debt management\",\"datePublished\":\"2023-05-17T11:45:10+00:00\",\"dateModified\":\"2023-05-17T12:10:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\"},\"wordCount\":500,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2023\/05\/postQueueImg_1684307726.53.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mozambique\",\"Mozambique\"],\"articleSection\":[\"all news\",\"community\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/rating-can-rise-only-with-improvement-in-debt-management\",\"name\":\"Rating can rise only with improvement in debt management - 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