Moody’s downgrades Growthpoint and Redefine after cutting South Africa outlook

Moody’s Investors Service has downgraded ratings at Growthpoint Properties and Redefine Properties to negative, after lowering its outlook for the South African government’s credit rating. Moody’s said the negative outlook on these was a direct consequence of the sovereign outlook change from stable to negative. It affirmed the long-term Baa3 issuer ratings. It stated: “The weakening macroeconomic environment has translated into depressed consumer and business confidence which flows through to lower growth prospects for these corporates, given their material exposure to the domestic operating environment. “The rating agency expects GDP growth of only 0.7% in 2019 and 1% in 2020.”