Friday’s credit rating agency, Moody’s, downgraded South Africa’s equity brand to the speculative investment category, after the country’s economy returned to contraction at the height of the emerging Corona virus.
Moody’s downgraded the rating from BA1 to BA3 due to “the continued deterioration of its financial position and poor structural growth,” while the agency believes that these problems “will not be addressed effectively through the current policy” of the government.
The agency kept the negative horizon out of fear of “weaker-than-expected growth and faster debt growth than expected.”
Source
the art
