Johannesburg – South Africa narrowly dodged a downgrade to sub-investment near the end of last year, but it is still on Moody’s “watch list”. Other countries on the list include Britain, Italy China, Mexico and Brazil.
Moody’s kept South Africa’s sovereign rating two notches above sub-investment grade at Baa2, with a negative outlook. Moody’s is set to publish reviews again on 7 April, 11 August and 24 November this year.
In an interview with Reuters, Alastair Wilson, Moody's managing director of sovereign risk commented on the impact of political uncertainty. "Certainly it's fair to say (political) noise has risen in recent months, but that isn't necessarily significant from a credit perspective.”