Moody's bleak on SA outlook

File: Moody's is the only international credit rating agency that hasn't downgraded the country to junk status.

File: Moody's is the only international credit rating agency that hasn't downgraded the country to junk status.

JOHANNESBURG - While South Africa’s credit profile has proven to be resilient it's likely to continue to erode, according to Moody’s Investors Service.

Moody's is the only international credit rating agency that hasn't downgraded the country to junk status.

READ: All eyes on Ramaphosa’s next Cabinet

In a post-election credit report, the agency painted a bleak outlook for the country’s GDP growth rate which is expected to remain low.

It says government's debt burden was expected to rise to 65 percent of GDP by 2023 and more than 70 percent when including guarantees to Eskom.

READ: Moody's skips SA's sovereign credit rating announcement

The report doesn't say when it would be reassessing South Africa's sovereign credit rating.

Analysts predict that this may happen after President Cyril Ramaphosa announces his Cabinet

Source
eNCA

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