Moody's downgrades South Africa sovereign rating to "junk"

JOHANNESBURG, March 27 (Reuters) - Ratings agency Moody’s downgraded South Africa’s sovereign credit rating to “junk” status on Friday, moving the rating down to ‘Ba1’ from ‘Baa3’ and maintaining a negative outlook.

“The key driver behind the rating downgrade to Ba1 is the continuing deterioration in fiscal strength and structurally very weak growth, which Moody’s does not expect current policy settings to address effectively,” Moody’s said in statement. (Reporting by Alexander Winning; editing by Olivia Kumwenda-Mtambo)