Johannesburg – Five economists, part of a snap survey conducted by Fin24, agree that rating agency Moody’s will downgrade the country’s credit rating by one notch, keeping it at investment grade.
The rating agency has the country’s long-term foreign currency and local currency debt rating two notches above junk status at Baa2. Following the Cabinet reshuffle in March, where President Jacob Zuma replaced former finance minister Pravin Gordhan with former home affairs minister Malusi Gigaba, Moody’s placed the country on review for a downgrade.
At the time both Fitch and Standard and Poor’s (S&P) downgraded the foreign currency rating to junk status.
