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After More Than 25 Years S. Africa Is Now Junk With Moody’s Too

  • Junk rating adds to strain of nationwide coronavirus lockdown
  • Zuma years added to erosion of credit profile, Moody’s says
South Africa’s Economy Enters 70th Month of Downward Cycle
Photographer: Guillem Sartorio/Bloomberg
Updated on

South Africa has lost its Moody’s Investment Services investment-grade credit rating more than 25 years after it was first awarded as it grapples with a nationwide lockdown to curb the spread of the coronavirus.

Moody’s now assesses the nation’s foreign- and local-currency debt at Ba1, one level below investment grade. The move reflects “continuing deterioration in fiscal strength and structurally very weak growth,” the company said in a statement Friday. The outlook on the rating remains negative, which means the next move could be a further downgrade.