Moody's To Announce Review Of The Country's Credit Rating

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Published Nov 26, 2016

South Africa is on tenterhooks this evening as it awaits a decision from international ratings agency Moody's. The agency is expected to deliver its review of the economy and a possible downgrade could push South Africa closer to junk status. Fitch just revised South Africa's outlook to negative from stable. The ratings agency also affirmed the country's long-term foreign and local currency issuer default ratings at BBB-. Ratings agencies Standard and Poor's and Moody's are also scheduled to announce their assessments hopefully today and in the next week. A downgrade could trigger an investor exodus and capital outflows. Borrowing will become more expensive and add to the government's already high debt levels. However, as Sumitra Nydoo reports, some economists believe it's not a done deal yet and South Africa could get a reprieve.