Reserve Bank: SA could be ‘insulated’ from effects of a possible Moody’s downgrade
A downgrade by the ratings agency seems likely, but SA’s financial markets could be limited by attractive 10-year bond yields, among other things
29 May 2019 - 18:32
While SA’s risk of a credit rating downgrade by Moody’s Investors Service is heightened, the country could be “insulated” from the expected losses, according to the Reserve Bank.
SA had a reprieve from Moody’s at the end of March when it did not make a pronouncement on the country. However, SA’s domestic fiscal position has weakened significantly, “exacerbated by, among other things, weak domestic growth; a poor revenue outlook' deteriorating debt dynamics; and the fragile financial position of state-owned enterprises”, the Bank said in its financial stability review released on Wednesday evening...
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