Land Bank downgrade a warning sign for South Africa, says economist

Africa

The Land and Agricultural Development Bank of South Africa (LABDSA) on Tuesday gained the dubious honour of being the second state-owned entity – and the first bank – to be downgraded to junk status with a negative outlook by the eternally patient Moody’s Investor’s Service. With Eskom being rated B3 (speculative and a high credit risk) with a negative outlook in November last year on the back of South Africa’s revised rating to Baa3 (medium grade, with some speculative elements and moderate credit risk), the LADBSA joined with a Ba1 rating (judged to have speculative elements and a significant credit…

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