Moody's says aid suspension, hidden debt a credit negative for Mozambique

Reuters
Fishing boats sit beneath the skyline of Mozambique's capital Maputo, April 15, 2016. Picture taken April 15, 2016. REUTERS/Grant Lee Neuenburg

MAPUTO (Reuters) - Ratings agency Moody's said on Wednesday the suspension of financial assistance to Mozambique and discovery of hidden debt hit its assessments of the government's financial strength and was also a credit negative for the country. The IMF has said that Maputo has admitted to having more than $1 billion of undisclosed debt. The World Bank is delaying approval of further development loans pending a debt sustainability analysis to be conducted with the IMF. (Writing by James Macharia; Editing by Ed Cropley)