South Africa’s drift further into junk means it is time for investors to bail out of the country’s banks. According to Paul Hollingworth, managing director of Creative Portfolios: ‘Impregnable bank franchises might start to really crack when the second COVID-19 wave intensifies. The banking sector may well be more fragile than we thought”.
South Africa lost its last investment-grade rating in March. Fitch and Moody’s made further downgrades recently and the country now rates two notches below investment grade with a negative outlook.
Source : The Africa Report
