Moody’s: Ramaphosa’s win raises prospect of an improvement in SA’s rating
The new ANC president’s narrow win could limit his ability to implement reforms
Credit-ratings agency Moody’s has given the new leadership of the ANC the thumbs-up and says it raises the prospect of an improvement in SA’s rating. However, it warned that the narrow victory of newly elected ANC president Cyril Ramaphosa could limit his ability to implement promised reforms. Moody’s rating review period started on November 24 and it is expected to run until after the announcement of the 2018 budget in February. The agency said on Tuesday that this period would allow it to assess the willingness and ability of the South African authorities to implement policies that will tackle the challenges facing the country.
Moody’s placed SA’s Baa3 rating on review for a downgrade in November shortly after S&P Global Ratings relegated the country to junk status. It warned that Ramaphosa’s narrow victory would complicate reaching consensus on the necessary reforms. The opposition faction of the ANC secured substantive representation among the top six ANC positions, namely...
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