MOODY’S MEETING
SA did enough to stave off downgrade, says Nhlanhla Nene
Finance Minister Nhlanhla Nene on Monday met with Moody’s Investors Service and says he is confident that through its most recent budget SA has done enough to stave off a credit ratings downgrade. Nene was also optimistic about the likelihood of the Treasury revising the growth rate upwards in line with the uptick in consumer and business confidence. "From my side I’m quite confident we presented a credible story," Nene said. Ratings agencies Fitch and S&P Global Ratings already have SA’s ratings in junk territory, with S&P having cut its local currency rating in response to the October budget. The agencies have flagged three concerns: weak growth prospects, question marks over SA’s commitment to fiscal consolidation and the risk that guarantees to ailing state-owned enterprises could be called. Moody’s is the only one of three major ratings agencies that has SA’s foreign-currency and rand-denominated debt at investment grade. It is due to make an announcement on March 23. A downgra...
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