for subscribers

Moody's places SA on downgrade review

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town - While Finance Minister Pravin Gordhan is in the United Kingdom trying to woo international investors and prevent a sovereign ratings downgrade, Moody's Investors Service has placed South Africa’s Baa2 bond and issuer ratings on review for downgrade.

“The decision to place the ratings on review was prompted by the continuing rise in risks to the country's medium-term economic prospects and to its fiscal strength, notwithstanding the tighter fiscal stance undertaken in the 2016/17 budget,” Moody’s said in a statement.

If Moody’s does indeed downgrade South Africa, it will become one notch away from a junk, which has a considerable impact on investment.

Professional investors, such as hedge fund, pension fund and asset managers, have a policy that prevents them from investing in countries carrying a junk status.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
16.19
(-0.10)
ZAR/GBP
21.11
(-0.12)
ZAR/EUR
19.19
(-0.12)
ZAR/AUD
11.55
(-0.13)
ZAR/JPY
0.15
(-0.14)
Gold
1901.55
(+0.01)
Silver
24.57
(+0.10)
Platinum
902.03
(+0.40)
Brent Crude
41.85
(-1.66)
Palladium
2378.04
(+0.61)
All Share
55339.58
(+0.99)
Top 40
50692.28
(+0.83)
Financial 15
10790.70
(+3.99)
Industrial 25
74905.70
(+1.05)
Resource 10
52561.57
(-0.49)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
24% - 69 votes
No, I did not.
52% - 149 votes
My landlord refused
24% - 70 votes
Vote