Senior FNB economist Siphamandla Mkwanazi has urged policymakers to take the Moody's ratings seriously.
On Friday, Moody’s decided to keep the country one notch above sub-investment grade, changing its outlook on the country’s credit rating from stable to negative.
Moody’s states that South Africa’s economic growth has been deteriorating and showing no signs of improvement.
Speaking to Refilwe Moloto, Mkhwanazi says what is important is the stabilisation of the country's debt.
It was quite a strongly worded statement from Moody's, quite uncharacteristic of Moody's so far as South Africa is concerned.— Siphamandla Mkwanazi, Senior FNB Economist
Potentially we could be looking at a full-on downgrade within the next 12 to 18 months or so especially if nothing is done regarding our debt profile.— Siphamandla Mkwanazi, Senior FNB Economist
Mkwanazi says South Africa's debt levels were a concern in February but the forecasts were that it would stabilise.
This time around debt is not stabilising and it's a scary picture— Siphamandla Mkwanazi, Senior FNB Economist
Listen to the full interview below...
This article first appeared on CapeTalk : 'SA faces a full-on downgrade if nothing is done about our debt profile'