In the wake of Zambia’s default on a portion of its private creditor debt and the subsequent downgrade by international credit ratings agencies, investors are scanning the map to see which country will tumble next. According to the global ratings agency Moody’s Investors Services, Mozambique is a probable candidate.
Moody’s warned in its annual report for Mozambique that the country’s debt will likely exceed 100% of GDP and “the government’s low willingness to prioritize debt payments,” make it a prime candidate to default on some of its upcoming repayments.
