Second ratings agency prepares to downgrade SA
Moody’s cited last week’s Cabinet reshuffle by President Jacob Zuma‚ which has sparked widespread political and popular outrage‚ as the reason for the review
Moody’s on Monday put South Africa on watch for a possible ratings downgrade‚ dealing a double blow to the country’s image as an investment destination in one day. A country’s credit rating is a signal to investors of how capable the state is of repaying debt. The lower the rating‚ the harder it is for the government to borrow money to spend on key projects.