The Moody's logo is shown outside the offices of Moody's Corporation in New York, New York, USA. The ratings agency has downgraded of South Africas debt rating to one level above junk status, putting further pressure on the economy.
JOHANNESBURG - South Africa is a step closer to junk status.
It’s been placed on review for a ratings cut by Moody&39;s.
The ratings agency says the decision follows increasing risks to the country’s economic prospects.
That’s despite the tighter fiscal policy announced in last month’s budget.
Moody’s will assess the extent to which government policy can stabilise the economy.
That’s amid increasing volatility at home and abroad.
Moody’s will visit the country later this month to meet with government officials.
The agency will look into the likelihood of a reversal in the country’s economic decline.
It&39;s also concerned about the impact of the drought, low commodity prices and labour unrest.
Last year, growth fell to 1.3 percent, the slowest pace since 2009.
Growth is expected to fall further this year.