Business 1.2.2017 04:18 pm

Political tension, weak growth increase chance of downgrade – Moody’s

Image: Moneyweb

Image: Moneyweb

The international ratings agency has warned of the impact the political climate and slow growth can have on the country’s overall rating.

“Political tensions impeded key structural reforms such as comprehensive reforms of state-owned enterprises, which are yet to take place, and hampered growth, another key credit challenge,” said Moody’s.

The ratings agency released a statement on Wednesday afternoon. Moody’s currently rates South Africa two notches above junk status with a negative outlook.

This comes in the wake of S&P commenting on the politics affecting the state, particularly within the ANC, which is experiencing a succession battle between outgoing AU chairperson Nkosazana Dlamini-Zuma and Deputy President Cyril Ramaphosa.

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