EM lenders dismiss SA outlook downgrade

African Bank correct size
By Mariam Meskin
04 Nov 2019

Moody’s has downgraded South Africa’s outlook from stable to negative, in what some think is the precursor to the country being classified as a junk borrower. Lenders — in characteristic fashion — have shrugged off the implications for the country’s borrowers, claiming they enjoy a strong national banking system.

The announcement last Friday affirmed South Africa’s Baa3 long-term foreign currency and local currency issuer ratings, though that position may not be a secure one, many in the market fear.

A note from Moody’s said: “The challenges the government faces are evident in the continued deterioration in South Africa’s ...

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