# Ratings agency Moody’s says South Africa is in a negative cycle where high borrowing costs discourage investment, hindering growth and further increasing debt costs. The agency rates the country’s long-term foreign and local currency debt at Ba2 with a stable outlook. Moody’s says that although policies targeting fiscal and economic issues are advancing, they will take time to produce results because of implementation difficulties. It says these difficulties stem from the complexity of structural reforms, entrenched private interests and the difficult political landscape under the coalition government.
Moody’s says SA’s high borrowing costs are discouraging investment and hindering growth