Moody's move SA to junk status

To discuss the impact of the downgrade to the country's economy eNCA speaks to economist Duma Gqubule. Courtesy #DStv403

JOHANNESBURG - It's official. South Africa has been junked.

The global Coronavirus outbreak wasn't enough to stop Moody's ratings agency from cutting the country's sovereign credit rating to sub-investment grade.

READ: Moody’s could hold decision on SA downgrade, for now

The long-term foreign-currency and local-currency ratings have been lowered from Baa3 to Ba1.

Moody's cites a continuing deterioration in fiscal strength and structurally very weak growth as their reason for the downgrade.

READ: Moody's cuts South Africa's growth forecast

All three major ratings agencies have now moved South Africa to junk status.

eNCA Business Anchor Devan Murugan has more details in the video above.

Source
eNCA