Moody's downgrades South Africa's credit rating to junk status

Moody's downgrades South Africa's credit rating to junk status

- South Africa's credit rating has been downgraded to junk status

- Moody's the last of the three big rating agencies which have downgraded SA to junk status

- The economy is expected to react negatively to the news

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The challenges facing the global and local market at the moment have not deterred international rating agency, Moody's from downgrading South Africa's sovereign credit rating to junk status.

Moody's lowered the long-term foreign-currency and local-currency ratings from Baa3 to Ba1.

Briefly.co.za learned that this is the last of the three ratings agency's which have now downgraded South Africa's credit rating to junk status.

The result has caused the rand to nosedive against the dollar, trading at R17.57 to $1 as of writing this article and the rand is expected to fall even more as news of the downgrade reaches the markets.

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Moody's has revealed that weak growth and degradation in fiscal strength were reasons for the rating agency to cut South Africa's credit rating according to ENCA.

In other news, Briefly.co.za, reported on a break in the undersea cable which provides South Africa with vital access to the internet.

The cable had broken earlier this year and resulted in a notable slowdown in SA's internet speeds.

A break has been reported in the cable, but it is not yet clear where the break is if the damage is on the underwater part of the cable the repairs would take longer and be more expensive if the break is on land than it would be significantly easier and cheaper to repair.

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Source: Briefly.co.za

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