JOHANNESBURG (Reuters) – 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 faces, calling weaker-than-expected economic data “credit negative”.
A Moody’s sign on the 7 World Trade Center tower is photographed in New York, file. REUTERS/Mike Segar
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.
Reporting by Alexander Winning; Editing by James Macharia