SABC News - Economists expect no change in Moody’s review:Friday 11 August 2017

Economists expect no change in Moody’s review

Friday 11 August 2017 15:20

SABC TV Desk

Moody's is expected to annouce a  review of South Africa's credit rating on Friday.

Moody's is expected to annouce a review of South Africa's credit rating on Friday.(REUTERS)

Economists say they expect no change when ratings agency Moody’s issues a review of South Africa's credit rating on Friday afternoon.
Moody's current rating for SA is BAAA-3 with a negative outlook.

Among recent negative economic factors, mining output fell by 0.8 % year-on-year in June while manufacturing contracted by 2.8 %.
Moody’s still has South Africa one notch above junk on both ratings.

“I think that the second half of this year could lead to a continuation in the recession and that is very bad also for our sovereign credit ratings. I think that there is a possibility that we will at least hold the just into investment grade rating but there is a risk that we could be rated downwards and that of course would make it very difficult for us to access foreign capital and put up the cost of foreign capital. We are already seeing foreign investors being net sellers of over R40 billion worth this year of equities on the JSE and I think that just shows the global investment community has said we can do without investing in South Africa,” says South African Institute of Race Relations’ Chief Economist, Ian Cruickshanks.

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