Moody's says South Africa recession shock credit negative

6th September 2018 By: 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".

Data showed on Tuesday that the South African economy contracted 0.7% 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.