S&P downgraded Mozambique’s long-term local currency debt rating to SD (selective default) from B-, following late payments on long-term, local currency commercial debt between February and May 2023. Although these missed payments have since been addressed, with payments on local currency debt resuming in May, the rating agency has confirmed this as a selective default. S&P will wait for one business day before likely raising the long- and short-term local currency sovereign credit ratings on Mozambique to CCC+/C.