South African’s Sovereign Credit Rating Downgraded to “Junk”
Moody’s on Friday, 27 March 2020 announced that they were cutting South Africa’s sovereign credit rating to Ba1 from Baa3 – the third rating agency to downgrade South Africa to “sub-investment grade”, officially relegating the country to dreaded “junk” status. Additionally, Moody’s outlook remains “negative”, meaning a further downgrade could be on the horizon if debt rises faster than expected. It also highlights the views that South Africa’s economic and fiscal metrics could deteriorate further should policies prove to be ineffective, especially in light of the global recession.
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