‘Moody’s rating should be a reminder for SA to avoid junk status’
Moody’s reaffirmed the country’s credit rating two notches above sub-investment level.
JOHANNESBURG - Finance Minister Pravin Gordhan says a decision by credit ratings agency, Moody's, not to further downgrade the country should serve as a reminder to remain focused on doing everything possible to avoid junk status.
Moody's reaffirmed the country's credit rating two notches above sub-investment level, with the outlook at negative.
Two other rating agencies now have to make their decision known in the next few weeks.
LISTEN: Economist: Moody's rating on SA nothing to celebrate
Gordhan says Moody's report has reminded government of what it should focus on, including building investment confidence to avoid a future downgrade.
"I am very optimistic that team South Africa approach is one we can extend to the next two rating agencies that are going to come and have a look at our economy and our management of our economy."
Credit rating agencies S&P Global and Fitch currently have the country as just one notch above junk status.
Gordhan says he hopes Moody's report will help set the tone for the other two agencies.
The minister says it is a collective effort from government, labour and business to avoid a downgrade.
#PravinGordhan on Moody's decision to maintain SA's credit rating 2 notches above junk status, he says it's an achievement for "Team SA".— EWN Reporter (@ewnreporter) May 9, 2016
#PravinGordhan says there are forces challenging the "forces of good."— EWN Reporter (@ewnreporter) May 9, 2016