Moody’s puts SA on notice as it changes its outlook to negative
The outlook change reflects the ‘material risk’ that the SA government will not be able to stop the deterioration of its finances
Ratings agency Moody’s Investors Service lowered its outlook on SA’s credit rating from stable to negative on Friday, signaling that the country has an 18-month window to get its house in order to avoid being cut to junk status.
The ratings agency kept SA’s debt at Baa3, one notch above sub-investment grade, or junk. The change in outlook was largely expected by the market but raises the likelihood that SA government debt could be downgraded...