Sovereign analyst at Moody’s ratings agency, Lucie Villa says South Africa’s credit outlook remains stable and a change in the short-term is unlikely.
There have been concerns Moody’s could downgrade South Africa’s rating to junk status – but this now appears less likely in the short term.
Moody’s is expected to make an announcement on South Africa’s credit rating on the first of November.
The other two ratings agencies downgraded South Africa to junk status two years ago.
Villas was speaking at the Moody’s Sub-Saharan Africa Summit in Sandton, north of Johannesburg.
Listen to Lucie Villa thoughts on South Africa’s economic outlook for the short-term:
Earlier on Tuesday, the credit rating agency lowered South Africa’s economic growth outlook to 0.7%, from 1% for the 2019-20 financial year.
Villa, says the growth forecast of all G20 countries, which includes South Africa, was revised downwards due to external factors such as US-China trade tensions and the global economic slowdown.
“Then we revised all of our forecasts on the 22nd of August for all G20 economies which South Africa is a part of. Based on other data that we received between June and August, we revised down to 0.7%.”