Moody's delay SA’s credit rating announcement

The ratings agency was expected to make the announcement on Friday but has not revealed when the next announcement will be

Picture: Facebook.

JOHANNESBURG - Moody's has delayed its announcement for South Africa's sovereign credit rating.

The ratings agency was expected to make the announcement on Friday.

The agency has not revealed when the next announcement will be.

Moody’s said last month that it had noted South Africa had entered into a technical recession with poor growth.

It cited increasing challenges due to an acceleration in inflation, driven in parts by rising fuels prices and rand depreciation.

The agency also followed international banking groups in cutting South Africa’s growth forecast, slicing it down from 1.5% expected at the start of the year to just 0.7%.

But apart from this, Moody’s has been positive, saying a few weeks ago there was little chance it would strip South Africa of its investment-grade credit rating this year.

However, the agency says South Africa must keep its finances tight if it wants to maintain that rating in the longer term.