Moody’s watching closely to see how new SA leadership will right the ship
Credit rating agency Moody’s is paying close attention to the new South African leadership’s response to the country’s economic woes, after Jacob Zuma’s resignation as president on Wednesday.
Moody’s vice-president Zuzana Brixiova said on Thursday that Moody’s "is focused on the policy implications of ongoing changes in leadership".
"The key point from a credit perspective will be the new leadership’s response to the country’s economic and fiscal challenges, and progress in implementing reforms addressing them," she said.
SA’s credit rating with Moody’s Investors Service is one notch above junk status.
While Moody’s has not confirmed when it will review SA again, it is likely to be after the 2018 budget policy statement, currently scheduled for Wednesday, February 21.
SA was downgraded by S&P in November, following an ill-received medium-term budget policy statement from Finance Minister Malusi Gigaba in October.
Moody’s said the medium-term budget policy statement signalled a change in policy direction that was credit negative.