BLSA: No reason to be complacent after Moody’s rating decision

BLSA CEO Bonang Mohale has described the announcement as an opportunity for the country to work towards addressing socio-economic challenges.

FILE: Moody's. Picture: Facebook.

JOHANNESBURG - Business Leadership South Africa (BLSA) says there’s no reason to be complacent after Moody’s kept South Africa's credit rating unchanged.

The rating agency has kept the country’s credit rating at baa3 but revised the outlook to stable from negative.

A cut to junk by Moody’s would have seen South Africa removed from Citi’s Influential World Government Bond Index, which could have triggered up to R100 billion in selling by foreign investors.

BLSA CEO Bonang Mohale has described the announcement as an opportunity for the country to work towards addressing socio-economic challenges.

Mohale says BLSA is ready to work with the government to restore investor confidence and to remove the threat of being downgraded by rating agencies.

Moody’s says state institutions look set to gradually reverse their positions, under a more transparent and predictable policy framework.

Moody’s rates the country’s debt at baa3, the lowest rung of investment grade.

S&P Global and Fitch cut the country to sub-investment grade in 2017.

Additional reporting by Ray White.