SA on tenterhooks ahead of ratings agencies’ decisions
Historically, Moody’s has been the most bullish of the three leading agencies and has SA’s foreign current rating pegged two notches higher than the others do
It is touch-and-go whether Moody’s ratings agency will downgrade SA’s sovereign credit ratings on Friday or give SA more time to undertake reforms to raise the growth rate. Historically, Moody’s has been the most bullish of the three leading agencies on SA. It has SA’s foreign currency rating pegged two notches higher than the others, on Baa2 (with a negative outlook), compared to Fitch and S&P, which both have SA ranked on the bottom rung of the investment grade ladder on BBB-. S&P already has SA on a "negative" outlook while Fitch still has SA ranked "stable". S&P is due to announce its rating review on SA on December 2, with Fitch expected to move the same day or in the week of December 5. In June, all three agencies affirmed SA’s ratings, but only Moody’s made an overwhelmingly positive assessment of the economy and the ability of the Treasury to return SA to fiscal stability and re-ignite growth. On Friday evening, Moody’s will update this view under a new, and possibly more be...
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