SABC News - Gordhan confident SA can avoid credit rating downgrade:Saturday 12 March 2016

Gordhan confident SA can avoid credit rating downgrade

Saturday 12 March 2016 17:14

SABC

Finance Minister Pravin Gordhan says he'll meet Moody's in London to discuss SA's credit rating review.

Finance Minister Pravin Gordhan says he'll meet Moody's in London to discuss SA's credit rating review.(SABC)

Finance Minister Pravin Gordhan says he is hopeful South Africa can avoid a credit rating downgrade when ratings agency Moody's visits the country next week.

Gordhan has told Bloomberg in New York that the government has decided it needs to do something different which not only surprises the markets, but begins to energise people.

Moody's announced this week it would be visiting the country after placing it on review for a possible downgrade.

Gordhan says he'll meet the agency in London to discuss the review.

Reuters, meanwhile, reports that an expected cut in South Africa's credit ratings to "junk" is already being priced in by investors who are increasingly shunning the country's financial assets.

South Africa is seen at risk of losing its investment-grade status because of persistently weak growth and large deficits.

Many investors are also unhappy with President Jacob Zuma's handling of the economy. – additional reporting by Reuters

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