BLSA welcomes Moody’s rating relief

Moody’s announced its decision on Friday night, keeping the country’s credit rating at baa3 and revising the outlook from negative to stable.

FILE: BLSA's Themba Maseko. Picture: Twitter @MasekoThembaJ/Twitter.

JOHANNESBURG - Business Leadership South Africa (BLSA) says it welcomes a decision by rating agency Moody’s to maintain South Africa’s long-term rating, adding that this is an opportunity for the country’s leaders to roll up their sleeves in addressing socio-economic challenges.

Moody’s announced its decision on Friday night, keeping the country’s credit rating at baa3 and revising the outlook from negative to stable.

The decision comes after the post-budget international investor roadshow by government, business and labour leaders, which included interaction with all three rating agencies in the US and UK and a meeting with about 120 investors in Argentina last week.

Business Leadership South Africa says the decision by Moody’s is reflective of the progress South Africa is making as a country in correcting some of its own goals.

It, however, adds that this is no reason to be complacent.

BLSA’s Themba Maseko said: “It’s a clear indication that the government and businesses, together with our social partners, are on the right course of fixing the economy and making sure that we can begin the task of rebuilding the economy to create jobs and deal with poverty and inequality.”

Maseko says the visit to Argentina, which BLSA was a part of, is where government and business gave assurances that South Africa is open for business.

He says the positive mood that characterised the trip was an indication that South Africa is on the road to recovery.