Moody's: We're unlikely to see much change in SA rating

The agency says South Africa has a stable outlook despite various challenges.

Moody's Ratings agency. Picture: Facebook.

JOHANNESBURG - South Africa is stronger than its peers with a stable outlook despite various challenges but factors that could change its rating soon are "relatively pie in the sky", Moody's ratings agency said on Tuesday.

There have been concerns that continued load shedding and therefore slower productivity could harm perceptions of the country's economic future, but the agency says this is not so for now.

"We see South Africa as being somewhat stronger than its peers and really in a situation where despite those challenges it is unlikely to see much in the way of ratings changes for the foreseeable future," Moody's analyst Kristin Lindow told a conference in Johannesburg.

Moody's downgraded South Africa to Baa2 from Baa1 in November 2014, citing slow growth, with this just two notches from speculative junk status.

However, the forecast of 2% growth for the country's economy is under threat as Eskom battles to keep the lights on.