Moody’s expects slow SA economic upturn
The ratings agency says that it expects SA's credit profile 'to remain in line with those of Baa3-rated sovereigns', but warns on state debt
Credit ratings agency Moody’s expects SA’s government finances and debt profile to deteriorate further and economic growth to recover only slowly over the next two years. It said this after its postponement of its SA credit rating propelled the rand to its biggest gain against the dollar so far in 2019. The agency said in a report on Tuesday that it expected the country’s credit profile "to remain in line with those of Baa3-rated sovereigns", partly explaining why it chose not to take a rating decision as scheduled on March 29. It also warned a downgrade could follow if government debt rose; the country failed to contain risks from state-owned enterprises (SOEs); and failed to boost economic growth. The rand jumped slightly after Moody’s released its credit report on Tuesday, before being 0.4% weaker at R14.21/$ by 5pm. It jumped 2.45% on Monday, the most since November 1, after Moody’s skipped a scheduled review on Friday. The rand was unchanged at R18.5499/£, after gaining on Mond...
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