Concern must be growing in the local market as ratings agency Moody’s has dished out more downgrades while an RMB survey suggests business confidence is in freefall.
On Friday, Moody’s downgraded South Africa’s foreign and local currency debt ratings to one notch above junk. On Monday, it cut the ratings of five local banks and some parastatals.
Today, Moody’s downgraded the credit ratings of Eskom, Sasol, MTN and the Airports Company of South Africa (ACSA). They come amid a recession hit local economy.
Falling oil prices and fewer voice calls would already be challenges for Sasol and MTN. But they now, unfortunately, face more headwinds as South Africa spirals out of control.