Moody’s: South Africa recession is credit negative

Ratings agency Moody’s said on Thursday that the South African economy’s slide into recession in the second quarter would exacerbate the fiscal and monetary challenges the country encounters, calling weaker-than-expected economic data “credit negative”.

Data showed on Tuesday that the South African economy contracted 0.7 percent in the second quarter.

The ratings agency is the last of the “big three” international agencies to have South Africa’s long-term foreign-currency debt in investment grade.

Source: Reuters