Jittery Friday likely as JSE awaits Moody’s verdict
The credit rating agency is expected to hold SA’s credit rating at one notch above junk and maintain its negative outlook
Credit ratings agency Moody’s is scheduled to issue a review of SA’s credit rating after US markets close on Friday, probably between 11pm and midnight local time.Moody’s is the only one of the big three ratings agencies to still hold SA’s sovereign credit rating above junk, and will hopefully not cut the country’s rating without first giving its customary warning of placing the country on its negative watch list.Before Moody’s downgraded SA’s sovereign credit rating to Baa3 on June 9, it signalled its intention on April 3 by adding the word "watch" to its negative outlook. It then changed its outlook back to negative (without appending the word watch) when it cut SA’s rating to one notch above junk.Both S&P and Fitch cut SA to junk status of BB+ a few days after President Jacob Zuma’s Cabinet reshuffle on March 31 in which Malusi Gigaba replaced Pravin Gordhan as finance minister.Moody’s rating of Baa3 equates to BBB- in S&P’s and Fitch’s nomenclature, which is one level above junk...
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