Moody’s wake-up call to Ramaphosa dims Goldman glow
Moody's has sounded a warning to the incoming cabinet to implement reforms to avoid a downgrade to junk status
Just as he was basking in the ringing endorsement he got from Goldman Sachs, President Cyril Ramaphosa got a wake-up call from Moody’s Investors Service, which warned it might downgrade the country’s debt if he does not deliver promised reforms.
In a late-night report on Wednesday, the last major ratings agency that has SA on investment grade warned the country’s debt is set to balloon well above levels forecast by the government and that a failure to boost growth, curtail spending and improve tax collection will "put downward pressure on the country’s rating".
If you are already a subscriber, please click on the following link to go to the full article: Moody’s warning to Ramaphosa: time to act on promises
Lead sovereign analyst at Moody’s SA Lucie Villa joins Business Day TV to discuss the ratings agency's view on how SA can avoid a downgrade.