Moody’s rating agency changed its credit rating outlook from stable to negative for South Africa Wednesday, expressing concerns that politicians overseeing the continent’s largest economy won’t be able to stick to strict fiscal policies.
Moody’s has said it fears commitment to low budget deficits could be undermined by pressure from factions of the governing African National Congress party, its labor movement supporters and a population facing high rates of poverty and unemployment. The agency also said a debate driven by the party’s popular youth leader over whether mines should be nationalized is scaring investors.
moody’s should be in jail