Another ratings downgrade on the cards for SA

South Africa faces the risk of a ratings downgrade by Moody's at the end of the month. Courtesy #DStv403

JOHANNESBURG - South Africa faces the risk of a ratings downgrade by Moody's at the end of the month.

State-owned enterprises' high debt levels are being blamed.

READ: Moody's says Eskom's future bleak

Experts say markets have already priced in a downgrade. 

A string of mixed messages from the country's officials, on what to do with the likes of Eskom and other SOEs, isn't helping the situation.

“I think seeing credible plans about how South Africa is restructuring the SOE’s and strong leadership particularly from the private sector coming into the SOE’s to restructure and provide a good growth plan, also having less uncertainty with the political outlook and an improvement in growth,” said Fund manager Remi Olu-Pitan.

Source
eNCA