Mozambique’s dollar bonds dropped for a fourth consecutive day after Moody’s downgraded the country’s local currency debt rating to Caa3 from Caa2, citing severe liquidity issues and high fiscal and external vulnerabilities. The downgrade follows concerns over Mozambique’s ability to manage its debt and external obligations. However, the country’s foreign currency debt servicing costs are manageable until the maturity of its Eurobond between 2028 and 2031.