In another quiet week on the data front, with only the August manufacturing production figures scheduled for release, all eyes will be on Moody’s ratings review on Friday night. In March, Moody’s Investors Service confirmed SA’s foreign-currency sovereign credit rating as Baa3, the last rung of the investment-grade ladder. It also upgraded SA’s credit outlook from "negative" to "stable". At the time, Moody’s view was that the erosion of SA’s institutions would gradually be reversed under President Cyril Ramaphosa’s leadership. Despite SA’s tepid economic performance since then, Moody’s has given every indication it will not junk the country’s ratings at its biannual review this week. At worst it could change the outlook from "stable" back to "negative". Speaking at the agency’s summit in Sandton in September, Moody’s senior credit officer Lucie Villa said SA’s economic growth was still likely to pick up slowly and the country’s medium-term fiscal consolidation plan remained achievab...
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