SA escapes Moody’s junk guillotine — for now

The country can collectively breathe a little easier this morning as the Moody’s verdict is in. Our credit rating outlook is revised from stable to negative, but not downgraded to sub-investment grade (junk) at this stage.

Moody’s says its decision to change the outlook to negative from stable “reflects the material risk that the government will not succeed in arresting the deterioration of its finances through a revival in economic growth and fiscal consolidation measures. The challenges the government faces are evident in the continued deterioration in South Africa’s trend in growth and public debt burden, despite ongoing policy responses.”….more