Government’s response to the rating action of Moody’s Investors Service (Moody’s)
1 November 2019
Government notes the decision by Moody’s to affirm South Africa’s long term foreign and local currency debt ratings at ‘Baa3’ and also revise the outlook to negative from stable. South Africa’s credit ratings by Moody’s remain investment grade (one notch above non-investment grade).
According to Moody’s, the outlook revision reflects the following:
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 of South Africa’s economic growth and public debt burden trends, despite on-going policy responses.