Ratings time bomb ticking as SA deficit widens
The latest developments could push Moody’s to place SA on negative watch in November
Signals are growing that SA is losing the battle to hold on to its investment-grade credit rating as public finances spin out of control and a top Treasury official warns "the box is empty".
Fitch Ratings (https://www.businesslive.co.za/bd/economy/2019-07-26-fitch-takes-grim-view-on-sa-changing-its-outlook-to-negative/) cut its outlook on SA’s debt to negative on Friday following the announcement of an additional R59bn in support for Eskom. Moody’s Investors Service hinted strongly earlier in the week that it could no longer remain silent on SA’s deteriorating debt picture.