Politics drags down SA growth
Moody's Investor Services did not publish a ratings review of South Africa on Friday, as had been widely anticipated.
Political tensions in the ruling African National Congress will weigh on South Africa's growth, ratings agency Moody's said yesterday.
President Jacob Zuma survived a no-confidence vote in parliament last week but a few dozen lawmakers from his own party supported the motion that would have had him removed after eight years in office.
“Key constraints to growth are domestic, including political tensions and policy uncertainty,” the ratings agency said in its credit opinion statement on South Africa.
Moody's Investor Services did not publish a ratings review of South Africa on Friday as had been widely anticipated.
Moody's has South Africa's long-term foreign and local currency debt ratings at Baa3, with a negative outlook. It is the only ratings agency that has South Africa's foreign-currency and rand-denominated debt at investment grade.
On 9 June, Moody's downgraded South Africa's credit ratings, some two months after both Standard & Poor's and Fitch had downgraded the foreign currency rating to junk status, following a far-reaching cabinet reshuffle at the end of March.
Both ratings agencies argued in their statements explaining the ratings decision that the executive changes initiated by President Jacob Zuma had put at risk fiscal and growth outcomes and caused policy uncertainty.
-additional reporting by FIN24
NAMPA/REUTERS
President Jacob Zuma survived a no-confidence vote in parliament last week but a few dozen lawmakers from his own party supported the motion that would have had him removed after eight years in office.
“Key constraints to growth are domestic, including political tensions and policy uncertainty,” the ratings agency said in its credit opinion statement on South Africa.
Moody's Investor Services did not publish a ratings review of South Africa on Friday as had been widely anticipated.
Moody's has South Africa's long-term foreign and local currency debt ratings at Baa3, with a negative outlook. It is the only ratings agency that has South Africa's foreign-currency and rand-denominated debt at investment grade.
On 9 June, Moody's downgraded South Africa's credit ratings, some two months after both Standard & Poor's and Fitch had downgraded the foreign currency rating to junk status, following a far-reaching cabinet reshuffle at the end of March.
Both ratings agencies argued in their statements explaining the ratings decision that the executive changes initiated by President Jacob Zuma had put at risk fiscal and growth outcomes and caused policy uncertainty.
-additional reporting by FIN24
NAMPA/REUTERS
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