It also cut its forecast for the country’s 2019 economic growth to 1.0% from 1.3%.
Moody’s expect the cost of serving the country’s debt to continue rising and growth to be slow.
South Africa’s first-quarter economic contraction has been labelled “credit negative” for government revenue and policy options by ratings agency Moody’s.
Moody’s is the last of the big three international credit firms to rate South Africa at investment grade.
It also cut its forecast for the country’s 2019 economic growth to 1.0% from 1.3%.
READ NEXT: Root causes of SA’s economic woes are political, not monetary, says Maimane
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