SA receives ratings reprieve from Moody’s

International ratings agency Moody’s on Friday as expected placed South Africa’s rating on review for a downgrade.

Moody’s maintained the country’s foreign and local currency debt on their lowest investment grade rung of Baa3.

“The decision to place the rating on review for downgrade was prompted by a series of recent developments which suggest that SA’s economic and fiscal challenges are more pronounced than Moody’s had previously assumed,” Moody’s said in a statement.

“Growth prospects are weaker and material budgetary revenue shortfalls have emerged alongside increased spending pressures. Altogether, these promise a faster and larger rise in government debt-to-GDP than previously expected.”