Sa credit rating outlook
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...
Moody's says the current rating off BAA3 is supported by a diversified economy, a sound macro-economic policy framework and a deep pool of domestic investors.
The DA says Moody’s decision could lead to more uncertainty in the country’s investment market.
At 1700 GMT, the rand was trading at 14.0200 per dollar, little changed on the day. The yield on the benchmark 2026 bond dipped 2 basis points to 8.82%.
It’s the third major agency to keep its rating unchanged with Fitch and S&P Global keeping South Africa at sub-investment grade.
The long-term foreign-currency rating stayed at ‘BB’, while the local-currency rating stayed at ‘BB+’.
The ratings agency was expected to make the announcement on Friday but has not revealed when the next announcement will be
BLSA CEO Bonang Mohale has described the announcement as an opportunity for the country to work towards addressing socio-economic challenges.
Treasury says it’s an opportunity to deal with the issues that led to the downgrade in April.
Moody’s said in a research report that plans for land redistribution, preferential procurement and other forms of affirmative actions could deter investors.
Fedusa says the abrupt Cabinet reshuffle in March illustrates a gradual erosion of institutional strength.
Some economists say while markets were expecting the downgrade by Moody’s, there is the ability to come back into investment grade.
On Friday Moody’s announced it had downgraded South Africa's credit rating one notch to BAA3.
On Friday night, the agency announced its decision which follows similar moves by S&P Global and Fitch.
The agency has kept its overall rating at BB+ with a negative outlook.
Fitch has re-affirmed South Africa’s rating at BB+ with a stable outlook.
Finance Minister Malusi Gigaba says bold and decisive interventions are needed to address structural defects in the economy.
Economist Thabi Leoka explains that while it will be hard for South Africa to shake off its junk status, it is not impossible.
Debt Management expert Wikus Olivier says South Africans are resilient and can overcome the impact of the ratings downgrade by S&P Global.