Rand boosted as Moody’s leaves SA’s rating unchanged

In its credit opinion report, which does not constitute a rating action, Moody's says South SA's credit rating remained at BAA3, the lowest rung of investment grade, with a stable outlook.

Picture: EWN.

JOHANNESBURG - The rand has been boosted by the news that Moody’s is keeping South Africa's sovereign credit rating at investment grade.

The ratings agency postponed giving a review last Friday which bolstered the markets and the local currency.

In its credit opinion report, which does not constitute a rating action, Moody's said South Africa's credit rating remained at BAA3, the lowest rung of investment grade, with a stable outlook.

Moody's became the last of the big three ratings agencies to keep South Africa at an investment-grade rating, so markets are sensitive to any pronouncement it makes

The agency said while economic growth would remain slow and fiscal strength would continue eroding, it expected South Africa's credit profile to remain in line with those of other BAA3-rated sovereign nations.

It also said South Africa's credit profile was supported by a diversified economy, a sound macro-economic policy framework and a deep pool of domestic investors.

The agency said this was thanks to a well-developed financial sector and markets.