Simnikiwe Hlatshaneni
Premium Journalist
4 minute read
4 Nov 2019
5:02 am

Moody’s downgrade next year is nearly inevitable – experts

Simnikiwe Hlatshaneni

To sustain Moody’s current rating, government would need to develop a credible fiscal strategy to contain the rise in debt.

Moody's expect the cost of serving the country's debt to continue rising and growth to be slow.

Experts have doubted South Africa can do much to stop the economy’s downward spiral to avoid another credit rating downgrade next year. This after the announcement by ratings agency Moody’s that it had changed its outlook on the government’s ratings from stable to negative and affirmed the Baa3 long-term foreign-currency and local-currency issuer ratings. According to Peter Attard Montalto, the head of Capital Markets Research at Intellidex, a downgrade by March next year was nearly inevitable. What steps to take in order to lead Moodys to a resolution to a stable outlook before then, was of key importance to thwarting...