Busa: Moody’s rating delay gives SA chance to improve on policy reforms

Moody’s Investors Service was expected to release its rating on Friday evening but opted to postpone the announcement.

FILE: Moody's headquarters in New York. Picture: AFP

JOHANNESBURG – The decision by Moody’s Investors Service not to release its sovereign debt rating for South Africa has been hailed as another chance for the country to improve on its policy reforms.

Moody’s was expected to release its rating on Friday evening but opted to postpone the announcement.

It had been feared that the agency would join S&P Global and Fitch Ratings in placing the country in junk status.

Business Unity South Africa (Busa) said the postponement of the announcement by Moody’s would give the country a chance to concentrate on political change and policy certainty.

“The decision by Moody’s to keep the rating at the same level and the outlook unchanged effectively means it is adopting a wait and see approach,” said Busa CEO Tanya Cohen.

Cohen said a credible plan was needed for state-owned enterprises along with a pro-growth roadmap.

She said South Africa’s skills and education framework also remained out of alignment and continued to undermine the country’s growth potential, something that needed to be fixed.

(Edited by Thapelo Lekabe)