Moody’s confirms SA’s credit rating, assigns negative outlook

It’s confirmed South Africa’s credit rating at Baa 2 and adjusted the outlook from stable to negative.

Moody's Ratings agency. Picture: Facebook.

JOHANNESBURG - Moody's has confirmed South Africa's credit rating at Baa 2 and adjusted the outlook from stable to negative.

The ratings agency said the ratings reflect the view that the country is likely approaching a turning point after several years of falling growth.

The negative outlook speaks to the implementation risks associated with the structural and legislative reforms that government, business and labour recently agreed on, in order to restore investor confidence.

Moody's has, however, made no changes to South Africa's local or foreign currency country ceilings.

The ratings agency said it would likely downgrade the country's rating if they were to conclude that the government's determination to stabilise and then improve its debt metrics was likely to falter, or if investor confidence were to decline by such an extent that external financing was insufficient to fund the current account deficit on an extended basis.