Moody’s won’t issue credit rating decision on SA this week

The agency announced on Monday night that it was placing the country’s sovereign credit rating on review.

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JOHANNESBURG – Moody’s says it will not be issuing a sovereign credit rating decision on South Africa this Friday as previously planned.

The agency announced on Monday night that it was placing the country’s sovereign credit rating on review.

It says a final decision will come after this has been completed, which could take between 30 to 90 days.

South Africa’s sovereign is currently two notches above non-investment grade at Baa2.

The review will allow Moody’s to assess these risks and if the changes in leadership signal a weakening in the country's institutional, economic and fiscal strength.

South Africa’s (P) Baa2 Senior Unsecured Shelf and MTN program ratings were also placed under review for downgrade, as was the (P)P-2 Senior Unsecured Short-Term rating.

The country’s long-term local-currency bond and bank deposit country ceiling remain unchanged at A1. The long-term foreign-currency bond and bank deposits country ceilings remain unchanged at A2 and Baa2, respectively.