Moody's keeps South Africa's negative outlookStaff Writer | November 28, 2016
Moody's has kept South Africa's sovereign rating at Baa2, which is two-notch above sub-investment with a "negative" outlook.
Africa Baa2 government bond rating
The negative outlook also recognizes the downside risks associated with political uncertainty and low business confidence as well as the challenging external environment characterized by low growth, investment and trade, Moody's said.
South Africa's rating would likely be downgraded in the absence of fundamental structural reforms supporting higher and sustainable medium term growth, the agency warned.
Continued accumulation of public debt and contingent liabilities in terms of GDP would also put downward pressure on ratings, said Moody's. ■