News

Possible financial downgrade on the cards by Moody’s

South Africa is set for another credit downgrade at the end of March 2019.

As the only major investment agency that had not given the country a junk status, Moody’s next rating review apparently does not look good.

Large debts by State-owned enterprises could be the root of the downgrade along with mismanagement.

The rand has been volatile over the last two months which also reflects that a downgrade can be expected.

This will in turn affect the country’s borrowing rate and with the country having major debt problems is of great concern.

There are hopes that the restructuring of the SOE’s will reflect a good growth plan and strong leadership will improve the growth.