latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/moody-s-downgrades-south-africa-on-continuing-deterioration-in-fiscal-strength-57797950 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Moody's downgrades South Africa on 'continuing deterioration' in fiscal strength

Paypal Well-Positioned To Gain Share In COVID-Related Digital Payments Shift

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Moody's downgrades South Africa on 'continuing deterioration' in fiscal strength

Moody's has downgraded the long-term foreign-currency and local-currency issuer ratings of South Africa to Ba1 from Baa3, with the outlook remaining negative.

The downgrade was attributed primarily to the "continuing deterioration" in fiscal strength and "structurally very weak" growth, and the rating agency's expectation that these issues are unlikely to be addressed effectively under current policy settings. Both outcomes speak to weaker economic and fiscal policy effectiveness than Moody's previously assumed.

The outlook remains negative because of the risk that the economy will grow at an even slower rate and the country's debt burden will rise even faster and further than currently expected. Moody's warned that these factors could weaken debt affordability and potentially, access to funding.

The country is entering a period of lower global growth in an economically vulnerable position given unreliable electricity supply and persistent weak business confidence and investment. Moody's said that South Africa's economic and fiscal challenges will be made worse by the coronavirus outbreak.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.