SA ‘must not waste’ Moody’s reprieve
The ratings agency credits the Ramaphosa administration, while business organisations welcome the decision
The Treasury will ask government departments to look at what each of them can do to lift SA’s credit ratings and take advantage of the opportunity Moody’s opened up when it surprised the market on Friday night by upgrading the outlook on SA’s rating to "stable" from "negative". The unexpected change in the outlook came as Moody’s kept its investment-grade rating on SA, crediting President Cyril Ramaphosa’s new administration for halting the erosion of institutions including the Treasury, South African Revenue Service and state-owned enterprises. "The recovery of the country’s institutions will, if sustained, gradually support a corresponding recovery in its economy, along with a stabilisation of fiscal strength," Moody’s sovereign analyst for SA Zuzana Brixiova said. The agency warned that it could again put the ratings on negative watch — as it did after October’s disastrous medium-term budget — if the government faltered in its commitment to revive economic growth and stabilise th...
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