BUSINESS MAVERICK: Moody’s casts doubts on South Africa’s bid to stabilise debt

Belgique Nouvelles Nouvelles

Rating agency Moody’s said late last week that South Africa’s goal to bring its surging debt load under control ‘will be very difficult to achieve’ and ‘unlikely’. That may seem like a statement of the obvious, but it is telling that it was made by Moody’s. If the rating agencies are not convinced by Treasury’s plans, more downgrades could be in the offing, which in turn will make the goal of debt stabilisation even more elusive.