The “Baa2″ rating of South Africa, two notches above speculative grade, is maintained but the perspective changes from “stable” to “negative”. A new sign of the tension that weighs on the country’s credit rating.
And three: after Fitch and Standard & amp; <- aside article normal or folder -> Poor’s, it was the turn of their competitor Moody’s to share a growing economic risk from Pretoria. The rating agency lowered its outlook on the sovereign rating of South Africa, a new notation made public on December 15. The South African perspective going there from “stable” to “negative” rating of “Baa2″, two notches above speculative grade, remaining unchanged.
The reason, according to Moody’s, the ” increasing probability of low growth over a prolonged period because of the challenges that mines and many other industries face “and” the risk of a fiscal slippage in terms of growth and increased political pressure. ” South African growth is expected at 1.4% – 1.5% this year
Outlook
It is for similar reasons. Standard & amp; Poor’s passed on December 4 the prospects for the country’s sovereign rating from stable to negative, while maintaining its rating to “BBB-”. His counterpart Fitch, she downgraded by one notch the long-term rating of South Africa now finds itself also to “BBB-”, just a step above speculative categories. The two agencies have justified their decision by disappointing growth prospects of the South African economy, plus a debt increase.
A new alarm on the South African finance which comes as several demonstrations were held across the country to demand the resignation of President Jacob Zuma accused of having plunged the South African economy in turmoil following the designation in quick succession of two finance ministers last week.
Benjamin Polle
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