Moody's to release SA credit rating

File: Finance Minister Tito Mboweni painted a bleak picture of the state of our economy, warning that the country is drowning in debt and that public expenditure is soaring. Courtesy #DStv403

JOHANNESBURG - South Africa will find out on Friday whether Moody's will downgrade the country to junk status.

The rating follows Wednesday's grim medium-term budget policy statement, which revealed the dire state of South Africa's finances.

READ: Moody's looking 'very carefully' at fiscal stance: Mboweni

Moody's is the only of the big three ratings agencies that still has the country at investment grade.

Moody's has twice decided to skip publishing a review of South Africa and it might decide to do so a third time, preferring to watch what's unfolding in the country.

Whatever the announcement, it will come of the back of bad news.

Finance Minister Tito Mboweni said both the budget deficit and debt ceiling are set to rise.

READ: Nine major economic issues weighing South Africa down

Economic growth is expected to come in well below 1 percent for 2019. 

The state of the economy has Mboweni asking for help from higher powers. 

He said, "at the most, I hope they keep the rating as it is but I'll ask the ACDP to help with prayers. It is not looking good "

If South Africa gets the largely expected negative outlook from Moody's, the country will have only about a year or so to get its house in order to avoid a downgrade. 

Source
eNCA