Moody’s Investor Services (Ba2, negative outlook) and S&P Global Ratings (BB-, stable outlook) will release their South Africa rating reviews on 7 May and 21 May, respectively. Fitch Ratings (BB-, negative outlook) does not provide its release dates as its analyst is based outside the European Union, but its review is due at about the same time.
A lot has been said in the media over the last few weeks regarding the possibility of whether South Africa (SA) would be downgraded to “junk status” by Moody’s and thereby be forced to exit the FTSE World Government Bond Index (WGBI).
The long-awaited downgrade by Moody’s of South Africa’s long-term foreign and local currency credit ratings from Baa3 to Ba1 came on Friday, 27 March and coincided with Day 1 of government’s national “lockdown”.
On Friday, 27 March 2020, news broke that rating agency Moody’s cut South Africa's sovereign credit rating to sub-investment grade. South Africa now has a sub-investment rating from all three major international rating agencies. What will this mean for South African bonds?
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za