Downgrade is ‘inevitable’

The final straw that could see one of the world’s most influential ratings agencies downgrade South Africa’s credit rating could be the ongoing fracas at the finance ministry, the custodian of state finances.

Moody’s Investors Service analysts this week visited the country to meet major players, including business, government and labour, after the agency placed South Africa’s rating on review for a downgrade earlier in the month.

The finance ministry has been under severe scrutiny since President Jacob Zuma fired Nhlanhla Nene as the minister in December, without giving reasons when the move was announced.