Moody’s downgrade fears hit rand, bonds
Downgrade possible within weeks with analysts expecting a one-notch cut
Reports that Moody’s could downgrade SA’s credit rating sooner than expected weakened the rand and sent bond yields higher on Tuesday, as market participants worried that a negative rating action would spark a selloff in bonds. Buoyed by stocks that benefit from a weaker rand, the JSE hit a 10-month high, closing the day 0.89% higher at 54172.76 points. Nomura analyst Peter Attard Montalto said there was a possibility that Moody’s might downgrade the country in coming weeks without a visit. The original view was that Moody’s analysts would visit SA towards the end of May and then report during June, he said. If you are already a subscriber, please click on the following link below to go to the full article: Rand, bonds soften on Moody’s fears If you would like to subscribe to BusinessLIVE Premium to read the full story, please click here: Subscribe Premium content is not yet available on the app. Please use the desktop site to subscribe.
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