Streaming issues? Report here
Temp 702 logo 1000 x 1000 2020 Temp 702 logo 1000 x 1000 2020
Best of 702
00:00 - 06:00
volume_up
volume_mute

Up Next: Weekend Breakfast with Refiloe Mpakanyane
See full line-up
Best of 702
00:00 - 06:00
Home
arrow_forward
Business
fiber_manual_record
Politics

Downgrades by Moody's and Fitch heap more misery on South Africa

21 November 2020 12:57 PM
Tags:
Credit ratings agencies
Fitch Ratings
Moody's credit rating
S&P Global Ratings

Moody's has downgraded the country's credit rating one notch to BA2 and maintained a negative outlook.

South Africa has suffered a double blow from two of the main rating agencies.

Moody's has downgraded the country's credit rating one notch to BA2 and maintained a negative outlook. Fitch moved it from BB to BB-, with a negative outlook.

According to Eyewitness News, Moody's has highlighted the further expected weakening of South Africa's fiscal position and indicated that while the strategy to improve things remains in place, implementation risks have risen.

Added to this, t has highlighted high and rising government debt, coupled with weak growth and exceptionally high inequality.

Moody's and Fitch are both concerned about South Africa's fiscal position due to the effects of the lockdown.

Moody's also said that while the strategy to improve the overall position remained in place, it was worried about implementation. The agency is concerned about rising government debt coupled with weak growth.

However, S&P Global has decided to keep its ratings unchanged at BB- for its foreign currency rating and BB for its local currency, both with a stable outlook.

This week, South African Reserve Bank Governor Lesetja Kganyago predicted a growth contraction of 8% for this year. But the country is expected to claw back some of that lost growth over the next two years.


21 November 2020 12:57 PM
Tags:
Credit ratings agencies
Fitch Ratings
Moody's credit rating
S&P Global Ratings

More from Business

gklj7crlgyrcoojoartmjpg

When it comes to funding, IDC keeps shifting goal posts - bemoans entrepreneur

4 December 2020 11:54 AM

IDC head of Corporate Affairs Tshepo Ramodibe explains why the funding application for Green Scooters was rejected.

Share this:
Read More arrow_forward

gepf-logo2png

Govt pension fund recovers from March year-end loss, assets at R1.9 trillion

3 December 2020 9:05 PM

Our long-term focus keeps us steady and we remain resilient says the Government Employees Pension Fund's Musa Mabesa.

Share this:
Read More arrow_forward

saa-planejpg

Govt looking to raise $400 million from sale of stake in bankrupt SAA - report

3 December 2020 7:23 PM

According to a report by Bloomberg News, the funds would be used to re-capitalize the reformed South African Airways.

Share this:
Read More arrow_forward

180124 Matshela Koko 2

'History will absolve us' - Former Eskom exec Matshela Koko at Zondo Commission

3 December 2020 6:38 PM

Various witnesses have implicated Matshela Koko in corruption, but he was his confident self before the State Capture Commission.

Share this:
Read More arrow_forward

myfanparkpng

Local celebrity platform myFanPark extends global reach with US merger

2 December 2020 8:49 PM

The platform offers anything from a personalised recipe from a celebrity chef to a virtual locker room huddle with a sports star.

Share this:
Read More arrow_forward

business-crisisjpg

Got a brand emergency? Call 'Ghostbusters for social media crises'

2 December 2020 8:08 PM

Well-known communicators Mike Stopforth and Victor Dlamini have partnered up to launch a 48-hour social media crisis consultancy.

Share this:
Read More arrow_forward

winning-numberspng

Lotto's consecutive number draw not 'dodgy': All combinations equally (un)likely

2 December 2020 7:23 PM

On Wednesday's PowerBall draw - It's when we see an obvious pattern that we get suspicious says statistics expert Johan Ferreira.

Share this:
Read More arrow_forward

covid-19 coronavirus economy 123rfbusiness 123rflifestyle 123rf recession

The Businesses that boomed in 2020

2 December 2020 7:15 PM

One of the worst years this century did not stop some industries from having their best year yet.

Share this:
Read More arrow_forward

business-closed-company-support-entrepreneur-owner-economy-123rf

'There's been no consultation' - Rasa will fight any stricter Covid restrictions

2 December 2020 6:40 PM

There's no scientific evidence the restaurant industry has contributed to the rising infection rate says Rasa's Wendy Alberts.

Share this:
Read More arrow_forward

Family Christmas holiday dinner festive season 123rflifestyle 123rf

Don't Worry, Be Merry: 'Checkers Xmas ad may be corny, but gets under your skin'

1 December 2020 8:44 PM

Checkers has given its own twist to Bobby McFerrin's 80s hit song. The TV campaign gets Andy Rice's advertising hero award.

Share this:
Read More arrow_forward

More from Politics

Covid-19 South Africa coronavirus stamp flag 123rf

'Nelson Mandela Bay COVID-19 restrictions to provide reprieve to health workers'

4 December 2020 12:42 PM

EC Health acting superintendent-general Dr Sibongile Zungu says the metro has seen a rise in hospitalisations in recent times.

Share this:
Read More arrow_forward

saa-planejpg

Govt looking to raise $400 million from sale of stake in bankrupt SAA - report

3 December 2020 7:23 PM

According to a report by Bloomberg News, the funds would be used to re-capitalize the reformed South African Airways.

Share this:
Read More arrow_forward

180124 Matshela Koko 2

'History will absolve us' - Former Eskom exec Matshela Koko at Zondo Commission

3 December 2020 6:38 PM

Various witnesses have implicated Matshela Koko in corruption, but he was his confident self before the State Capture Commission.

Share this:
Read More arrow_forward

201202-atm-edjpg

ATM adamant that motion of no confidence against Ramaphosa is not frivolous

3 December 2020 1:16 PM

ATM spokesperson Sibusiso Mncwabe says it was legal principle that the matter was postponed until 2021.

Share this:
Read More arrow_forward

business-closed-company-support-entrepreneur-owner-economy-123rf

'There's been no consultation' - Rasa will fight any stricter Covid restrictions

2 December 2020 6:40 PM

There's no scientific evidence the restaurant industry has contributed to the rising infection rate says Rasa's Wendy Alberts.

Share this:
Read More arrow_forward

201202-atm-edjpg

ATM motion is merely about grandstanding - Analyst

2 December 2020 5:19 PM

President Cyril Ramaphosa is set to face the first motion of no confidence in his leadership in Parliament tomorrow.

Share this:
Read More arrow_forward

150520strike.jpg

Govt tries to postpone unions' court challenge over wage increases until Feb

1 December 2020 6:48 PM

The government wants unions to consider a fresh proposal for an out of court settlement over increases for public sector workers.

Share this:
Read More arrow_forward

Andile Lungisa

Correctional Service Department confirms Andile Lungisa has been parolled

1 December 2020 9:55 AM

The Correctional Services Department confirmed on Tuesday that the jailed ANC councillor would be released on parole.

Share this:
Read More arrow_forward

InaugurationRamaphosa30

50 people who royally 'stuffed' up our fine, glorious land - Alexander Parker

30 November 2020 7:45 PM

From Jan van Riebeeck to Thabo Mbeki, from Sepp Blatter to minibus taxi drivers… these people stuffed up beautiful South Africa.

Share this:
Read More arrow_forward

Tom Moyane

Neither Mpofu nor Gordhan came out looking good - Pauli van Wyk (Daily Maverick)

30 November 2020 6:23 PM

The Money Show’s Bruce Whitfield interviews Pauli van Wyk, an investigative journalist at Daily Maverick.

Share this:
Read More arrow_forward