SABC News - Moody’s to announce SA’s credit rating review:Friday 11 August 2017

Moody’s to announce SA’s credit rating review

Friday 11 August 2017 05:29

Amina Accram

Moody's has South Africa one notch above junk status. (SABC)

Ratings agency Moody's is on Friday expected to announce a review of South Africa's credit rating.

Economists expect Moody's to affirm the Baa3 rating for the country and to retain the negative outlook.

The rating agency is expected to first assess the Medium Term Budget Policy Statement in October, and possibly the outcome of the ANC elective conference in December in terms of economic policy direction, before further ratings action is taken.

Fitch and Standard and Poor's have downgraded South Africa's credit rating to junk status.

Moody's still has South Africa one notch above junk.

Economist Azar Jamine says further downgrading the economy would force the country out of the world government bond index.

“All rating agencies will be waiting to see the medium term budget policy statement in October, and secondly what the presidential election outcome will be in December before deciding on whether to take a dramatic step in downgrading South Africa's credit rating further. Such a move by both these rating agencies to downgrade the local currency debt to junk would force South Africa out of the world government bond index.”

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