ECONOMIC WEEK AHEAD: Wait for Moody’s fuels uncertainty
The ratings agency has held talks with the Treasury, business and labour leader
It has been a month of suspense as SA waits to see whether a third ratings agency will downgrade the country’s sovereign credit rating to junk status. Moody’s said in April the sovereign rating was on review for a downgrade and its decision would be announced within 30 to 90 days. Moody’s officials held talks with the Treasury, business and labour leaders during the past week, ahead of the release of inflation figures for April and the Reserve Bank’s decision on interest rates. Finance Minister Malusi Gigaba’s spokesman, Mayihlome Tshwete, said at the weekend the Treasury had met all three ratings agencies. In April Fitch downgraded the foreign and local currency ratings to subinvestment grade after S&P Global Ratings lowered the foreign currency rating to junk for the first time since the turn of the century. This followed a cabinet reshuffle in March and fresh concern that political upheaval would affect fiscal policy. There is the added risk S&P may downgrade SA’s currency rating...
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