S. Africa Credit Rating Cut by Moody’s on Dim Growth Outlook

Moody’s Investors Service cut South Africa’s credit rating and lowered the nation’s growth outlook as the continent’s second-biggest economy faces power blackouts and rising debt levels.

The nation’s creditworthiness was lowered one step to Baa2. The outlook was raised to stable because “we do have have confidence in the government’s ability to rein in spending and meet its deficit targets,” Kristin Lindow, Moody’s senior vice president, said by phone from New York today. The rand extended declines against the dollar, weakening 0.9 percent to 11.2464 by 9:18 p.m. in Johannesburg.