Finance minister Tito Mboweni is expected to paint a bleak fiscal picture when he presents his medium-term budget late next month, making it likely that rating agency Moody's will put SA on alert for a downgrade to junk status when it reviews the rating in November.

Though Moody's has a stable outlook on its South African rating for now, economists are betting this could change to negative, especially after the rating agency's "relatively negative" comments at its annual Sub-Saharan African conference in Johannesburg this week.It warned that weak growth and bailouts for state-owned enterprises were driving SA's public debt ratio higher and that there was no clear plan to address this.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.