South Africa Awaits $7 Billion Ratings Double Jeopardy
- Analysts see S&P cutting rand debt’s assessment to junk
- Moody’s seen holding local, foreign debt at investment grade
South Africa Faces Potential Credit Downgrade
This article is for subscribers only.
South Africa will confront the threat of a $7 billion debt selloff this week as it awaits two concurrent judgments on its credit status.
Opinion among economists is divided as to how stark a danger that is. Fifty-six percent of respondents in a Bloomberg survey said S&P Global Ratings will reduce its assessment on rand-denominated debt to the highest non-investment grade on Friday. Moody’s Investors Service, which is scheduled to make a decision, will likely leave it unchanged, according to three-quarters of those asked.