BONANG MOHALE: Downgrade triple whammy hit SA when it was already down as fiscal crisis looms
Pessimism over future is likely to have a further deleterious effect on revenue collection
23 November 2020 - 08:43
Life just got much more difficult for SA. On Friday, ratings agencies Fitch and Moody’s joined S&P in plunging the country deeper into subinvestment grade, also known as junk status.
The key driver behind Moody’s rating downgrade to Ba2 — two levels below investment grade — is the “further expected weakening in SA’s fiscal strength over the medium term”. Fitch said “the pandemic has severely hit SA’s economic growth performance, and GDP is expected to remain below 2019 levels even in 2022”...
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