Moody’s and Fitch International lowered South Africa’s sovereign rating to “junk rating” on the grounds of South Africa’s increased debt and weakened fiscal power.
Some South African experts said that the relative stability of credit rating may offset the impact of this negative news.
However, South Africa’s Finance Minister said at a press conference on the 21st that the downgrade of sovereignty rating is stinging for South Africa, which will increase the cost of national borrowing and constrain the fiscal framework.
At the same time, the South African Finance Minister also called on the government to implement structural reforms as soon as possible to avoid further decline in ratings in the future.
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