Economics
S&P Cuts South Africa Deeper Into Junk as Virus Hits Growth
- Company lowers the government’s credit rating to BB- from BB
- South Africa lost its last investment-grade rating in March
South Africa soldiers are seen at a checkpoint managed by the South Africa Police Services on the N1 highway in Johannesburg, on April 24.
Photographer: Marco Longari/AFP via Geety Images
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S&P Global Ratings cut South Africa deeper into junk territory amid concern the Covid-19 pandemic will send the economy into a sharp downturn.
The ratings firm downgraded the country’s long-term foreign-currency rating to BB-, three notches below investment-grade, from BB. South Africa’s cost of servicing public debt will climb to about 6.5% of gross domestic product by 2023, S&P said Wednesday.