Moody’s downgrades IDC and DBSA
The ratings agency says there is a lower likelihood government will be able to provide support to the SOEs if they get into trouble
29 June 2020 - 13:20
Ratings agency Moody’s Investors Service has downgraded two SA development finance institutions, on the lower likelihood of the government being able to support these state-owned entities should they run into trouble.
Rising fiscal pressures — worsened by the economic downturn and state Covid-19 support mitigate the effects of the coronavirus outbreak — suggest that the state “may not always be in a position to provide timely and adequate support” to the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC), Moody’s said last week. ..
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