Moody’s downgrades South Africa
Africa’s most advanced economy was knocked down from Baa2 to Baa3
Africa’s most advanced economy was knocked down from Baa2 to Baa3. PHOTO: REUTERS
JOHANNESBURG:
Credit ratings agency Moody’s on Friday said it had downgraded South Africa a notch over gloomy growth prospects and the political instability unleashed by corruption scandals engulfing President Jacob Zuma. Africa’s most advanced economy was knocked down from Baa2 to Baa3 - one notch above junk status - with a negative outlook, Moody’s said in a statement. Fitch and Standard and Poor’s, the other two main global ratings agencies, already downgraded South Africa to junk status after Zuma’s shock purge of critical ministers in March, including respected finance minister Pravin Gordhan. The downgrade came after official statistics released Tuesday showed South Africa entering its first recession since 2009 after the economy unexpectedly contracted by 0.7% in the first quarter.
Published in The Express Tribune, June 11th, 2017.
Credit ratings agency Moody’s on Friday said it had downgraded South Africa a notch over gloomy growth prospects and the political instability unleashed by corruption scandals engulfing President Jacob Zuma. Africa’s most advanced economy was knocked down from Baa2 to Baa3 - one notch above junk status - with a negative outlook, Moody’s said in a statement. Fitch and Standard and Poor’s, the other two main global ratings agencies, already downgraded South Africa to junk status after Zuma’s shock purge of critical ministers in March, including respected finance minister Pravin Gordhan. The downgrade came after official statistics released Tuesday showed South Africa entering its first recession since 2009 after the economy unexpectedly contracted by 0.7% in the first quarter.
Published in The Express Tribune, June 11th, 2017.