The downgrade of South Africa’s top banks is another warning sign for the battered South African economy and will result in lending becoming more difficult for already-struggling consumers.
This is according to economists, who said the downgrading of banks followed suit when a country was downgraded.
Moody’s announced on Monday that FirstRand, Nedbank, Standard, Absa and Investec had their creditworthiness cut to one notch above junk status with a negative outlook.
“The primary driver for the rating downgrades is the challenging operating environment in South Africa, characterised by a pronounced economic slowdown, and weakening institutional strength,” Moody’s said.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.