Economist: SA downgrade 'unavoidable'
An economist feels there is no way South Africa can avoid being downgraded next month.
Last year, rating agencies Standard and Poor's along with Fitch both downgraded SA to junk status. Moody's has not yet done so. Economist at the Efficient Group, Dawie Roodt, believes a volatile Rand and controversy around the SOEs has not helped our situation either - particularly Eskom.
The power utility is struggling financially and loadshedding has returned - impacting directly on the economy.
Roodt says the writing is on the wall.
"I am afraid the recent significant deterioration within the state's finances is likely to force Moody's hand and so I expect Moody's to downgrade SA by the end of this month", he said.
"That is likely to lead to a weaker Rand, higher interest rates and the like". Roodt said.