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Double blow as Moody’s and Fitch both lower SA’s ratings further into junk

21 November 2020 8:45 AM
Tags:
SA Economy
Credit ratings agencies
Investment
Fitch
Fitch Ratings
Junk status
S&P Global
Moody's
South Africa junk status
Moody's credit rating

Global rating agencies Fitch and Moody's both downgraded South Africa's credit rating further into junk on Friday evening.

The country has been pushed further into sub-investment grade.

Moody's has downgraded the country's credit rating one notch to BA2 and maintained a negative outlook.

Fitch has downgraded South Africa's credit rating from BB to BB- and with a negative outlook.

The two agencies have cited rising government debt, coupled with weak growth, the economic shock of the Covid-19 pandemic, and SAs weak fiscal position.

Analysts say the downgrading could see South Africa's borrowing costs increase.

Meanwhile, the third global ratings agency S&P Global has decided to keep its ratings unchanged at BB- for its foreign currency rating and BB for its local currency, both with a stable outlook.


21 November 2020 8:45 AM
Tags:
SA Economy
Credit ratings agencies
Investment
Fitch
Fitch Ratings
Junk status
S&P Global
Moody's
South Africa junk status
Moody's credit rating

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