20°C / 22°C
  • Fri
  • 18°C
  • 10°C
  • Sat
  • 18°C
  • 13°C
  • Sun
  • 21°C
  • 14°C
  • Mon
  • 23°C
  • 15°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 23°C
  • 11°C
  • Fri
  • 26°C
  • 18°C
  • Sat
  • 25°C
  • 17°C
  • Sun
  • 25°C
  • 17°C
  • Mon
  • 27°C
  • 16°C
  • Tue
  • 24°C
  • 15°C
  • Wed
  • 25°C
  • 17°C
  • Fri
  • 19°C
  • 12°C
  • Sat
  • 19°C
  • 15°C
  • Sun
  • 22°C
  • 16°C
  • Mon
  • 23°C
  • 17°C
  • Tue
  • 23°C
  • 15°C
  • Wed
  • 25°C
  • 13°C
  • Fri
  • 21°C
  • 12°C
  • Sat
  • 20°C
  • 15°C
  • Sun
  • 22°C
  • 15°C
  • Mon
  • 23°C
  • 16°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 24°C
  • 11°C
  • Fri
  • 25°C
  • 17°C
  • Sat
  • 26°C
  • 19°C
  • Sun
  • 22°C
  • 19°C
  • Mon
  • 22°C
  • 18°C
  • Tue
  • 21°C
  • 18°C
  • Wed
  • 22°C
  • 18°C
  • Fri
  • 27°C
  • 16°C
  • Sat
  • 23°C
  • 18°C
  • Sun
  • 21°C
  • 17°C
  • Mon
  • 21°C
  • 17°C
  • Tue
  • 22°C
  • 17°C
  • Wed
  • 22°C
  • 17°C
  • Fri
  • 31°C
  • 17°C
  • Sat
  • 32°C
  • 15°C
  • Sun
  • 31°C
  • 15°C
  • Mon
  • 31°C
  • 17°C
  • Tue
  • 27°C
  • 16°C
  • Wed
  • 29°C
  • 16°C
  • Fri
  • 24°C
  • 17°C
  • Sat
  • 25°C
  • 16°C
  • Sun
  • 24°C
  • 16°C
  • Mon
  • 25°C
  • 16°C
  • Tue
  • 24°C
  • 15°C
  • Wed
  • 25°C
  • 17°C
  • Fri
  • 20°C
  • 12°C
  • Sat
  • 20°C
  • 16°C
  • Sun
  • 24°C
  • 16°C
  • Mon
  • 24°C
  • 17°C
  • Tue
  • 27°C
  • 14°C
  • Wed
  • 27°C
  • 13°C
  • Fri
  • 23°C
  • 12°C
  • Sat
  • 23°C
  • 12°C
  • Sun
  • 25°C
  • 12°C
  • Mon
  • 26°C
  • 14°C
  • Tue
  • 22°C
  • 12°C
  • Wed
  • 24°C
  • 11°C
  • Fri
  • 24°C
  • 12°C
  • Sat
  • 25°C
  • 15°C
  • Sun
  • 21°C
  • 17°C
  • Mon
  • 20°C
  • 16°C
  • Tue
  • 21°C
  • 16°C
  • Wed
  • 26°C
  • 16°C
  • Fri
  • 29°C
  • 16°C
  • Sat
  • 22°C
  • 16°C
  • Sun
  • 21°C
  • 15°C
  • Mon
  • 21°C
  • 14°C
  • Tue
  • 23°C
  • 13°C
  • Wed
  • 21°C
  • 15°C

Govt expects SA credit rating to return to investment grade in 24 months

Gigaba has told Reuters that government told ratings agencies that it will to step up efforts to dispose of assets in some state-owned entities to raise money for recapitalisation.

Picture: Supplied.

JOHANNESBURG – Finance Minister Malusi Gigaba says government expects that it could take 18 to 24 months for Standard & Poor’s Global and Fitch to return the country's credit rating to investment grade.

Gigaba says that Treasury has held very positive discussions with ratings agencies on his 2018 budget presented to Parliament on Wednesday.

Moody's is the only one of the three major ratings agencies which has South Africa’s foreign currency and rand-denominated debt at investment grade.

Picture: EWn.

Gigaba has told Reuters that government told ratings agencies that it will to step up efforts to dispose of assets in some state-owned entities to raise money for recapitalisation.

The agencies have been concerned about the financial health of SOEs.

Gigaba says the government does not have the capacity to give equity to Eskom and others.

This was backed up in his budget speech on Wednesday, where the minister said the deficit needed to be tackled.

“Government still faces a revenue gap of R48.2 billion in the current year, which carries through to the outer years of the medium-term expenditure framework.”

Moody's and Fitch noted earlier this week that there were signs of positive economic and political change and government is hoping that agencies will change their ratings.

WATCH: The 2018 Budget in 60 seconds

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus