Moody's Investors Service late Tuesday affirmed South Africa's Baa2 rating but revised the rating outlook to negative from stable. The ratings agency cited the subdued economic growth outlook on the back of the weak mining industry, and rising risk to the country's fiscal balance for the outlook downgrade. "South Africa's challenging investment climate restricts its long-term economic growth potential," said Moody's, adding that under-developed human and physical infrastructure resources as well as political uncertainty burden the country's extended forecast. The continued decline in commodity prices is also weighing on the economy, the ratings agency said.
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