“Mozambique’s ability to meet its trade obligations depends significantly on the resumption and completion of a key liquefied natural gas project led by TotalEnergies,” reads the note accompanying the decision, announced to maintain the rating at CCC+, with a Stable Outlook.
In the report, S&P says that “the project has been delayed due to persistent security risks in the Cabo Delgado region, but without significant deterioration of the security situation, the project could restart in the second half of 2023.
The stable outlook for the rating – which thus remains in one of the lowest places on the rating scale, indicating vulnerability and risk for investors – takes into account the country’s current financial capacity and uncertainties regarding future revenues.
“The stable outlook balances our view on Mozambique’s financial capacity to meet its financial obligations over the next 12 months with uncertainties about when liquefied natural gas production will begin and the associated revenues become available to the government,” reads the detailed explanation of the rating action.
