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Stable South Africa Outlook Means Slim Chance of Cut, Moody's Says

  • Progress of reforms will continue to be slow, Villa says
  • Moody’s view ‘hasn’t changed drastically since March’: Villa
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South Africa’s stable ratings outlook means there’s little chance of a change in its assessment soon, Moody’s Investors Service said, adding that the country has to stabilize its debt to prevent a cut back to negative.

The ratings company’s view on Africa’s most-industrialized economy “hasn’t changed drastically” since March, when it raised the outlook, Moody’s Vice President Lucie Villa said at a conference in Johannesburg Thursday. Weak confidence will prevail until after next year’s election, she said. South Africa has a “track record of shifting fiscal-deficit targets,” Villa said.