JOHANNESBURG (Reuters) – Moody’s said on Friday that a weaker fiscal outlook in South Africa’s medium-term budget policy statement issued this week was a credit negative, sending the rand weaker.

“The government’s revised budget policy statement projects larger fiscal deficits and higher government debt, amid slower growth, a weaker rand and higher interest rates than expected in February, a credit negative,” Moody’s said in a research note.

Moody’s is the last of the top three agencies to still rate the country investment grade.

Reporting by James Macharia; Editing by Robin Pomeroy