Moody's is set to release its latest ratings review of South Africa on Friday.
Johannesburg - In June the rating’s agency downgraded South Africa’s rating and assigned a negative outlook.

Mamello Matikinca, FNB Senior Economist said, “Moody’s currently has the country’s local and foreign currency at investment grade Baa3 (negative outlook) and we don’t expect any downgrade from today’s release given how recent the previous downgrade was, and just how little has changed since then.”

“We do, however, expect that they will have to reduce their growth expectations for the country which was pegged at below 1% and 1.5% for this year and 2018 respectively.”

Also read: Moody's downgrades SA's 5 largest banks and more 

Matikinca said the agency is also likely to highlight the risks posed by a weakened institutional framework, persistently poor growth and risks to the fiscal outlook.

“Our expectation is for the agency to lower South Africa’s credit rating below investment grade in 2018, after the October MTBPS, the December ANC elective conference, and the February budget,” Matikinca said.  

BUSINESS REPORT ONLINE