In a rating action late on Monday, Moody's upgraded Angola's foreign and local currency long-term debt to "B3" from "Caa1", maintaining a stable outlook.
Government bonds were up between 0.3 and 0.7 cents on the dollar on Tuesday, close to their highest since February 2020, while the kwanza on Monday raced to its best since April this year.
"Stronger governance, in particular in the quality of the country's executive and legislative institutions, albeit from weak levels, is reflected in various aspects of the credit profile, which Moody's expects to last," Moody's said.
Moody's said it expected fiscal metrics as well as liquidity and funding risks to improve.
"Higher oil prices compared to last year, and a stable exchange rate, will allow the positive impact of fiscal consolidation efforts and structural improvement in debt and public finance management to be visible in a downward-trending debt burden," the agency said.
(Reporting by Olivia Kumwenda-Mtambo in Johannesburg and Marc Jones in London, Editing by Timothy Heritage)
