Sign up with GoogleJamie McKane
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A junk downgrade could be the least of South Africa's problems
As South Africa heads into a three-week lockdown that will shut down large parts of its already shrinking economy, a possible downgrade of its credit rating to “junk” on Friday could be the least of its problems.
Moody’s Investors Service is scheduled to make an announcement at the end of the week and while it could end up taking no action, 19 of 23 economists surveyed by Bloomberg expect a negative ratings move. According to 12 respondents, the country will be cut to junk, while seven expect it to be placed on ratings watch for a downgrade, two expect it to be affirmed at current levels and two expect no statement.
[Bloomberg]
As South Africa heads into a three-week lockdown that will shut down large parts of its already shrinking economy, a possible downgrade of its credit rating to “junk” on Friday could be the least of its problems.
Moody’s Investors Service is scheduled to make an announcement at the end of the week and while it could end up taking no action, 19 of 23 economists surveyed by Bloomberg expect a negative ratings move. According to 12 respondents, the country will be cut to junk, while seven expect it to be placed on ratings watch for a downgrade, two expect it to be affirmed at current levels and two expect no statement.
[Bloomberg]
