Political parties welcome Moody’s rating decision

In a statement released on Saturday afternoon, the ANC says whilst this decision offers a welcome reprieve, much more remains to be done.

Moody's Investors Service. Picture: Facebook.

JOHANNESBURG – The African National Congress (ANC) says the decision by ratings agency Moody's to confirm the country's credit rating at investment grade affirms the work of the governing party - to implement measures aimed at recovering South Africa's economy.

After a 90-day review, Moody's announced on Friday night that it's decided to keep the country's credit rating at baa3 and revise its outlook from negative to stable.

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

In a statement released on Saturday afternoon, the ANC says whilst this decision offers a welcome reprieve, much more remains to be done.

Meanwhile, political parties have also reacted to the decision by the ratings agency, saying it shows that Cyril Ramaphosa's election as president has positively affected the economy.

The Democratic Alliance's Alf Lees said: “We are pleased that that has been the outcome of the political changes that have taken place. However, it is far from over, the economy needs for the ratings to be upgraded and not simply held constant.”

While United Democratic Movement's Nqabayomzi Kwankwa said: “We welcome this decision by Moody’s because it builds on the change of mood in government and the style of leadership so far. I think that it’s a result of the good decisions that have been by government through the new President, Cyril Ramaphosa.”