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.