South African government bonds were firmer at midday on Friday, on hopes that rating agencies might take a more favourable look at the economy following next week’s budget.President Cyril Ramaphosa will present the state of the nation address (sona) later in the day, setting the stage for the budget next week.Moody’s is set to make an announcement after the budget. The ratings agency still has SA’s credit rating at investment grade, while S&P Global Ratings and Fitch both lowered it to junk in 2017. In a statement on Thursday, Moody’s said it was monitoring developments in SA.S&P was also circumspect in its comments, saying Ramaphosa and his administration would require time to design and implement measures to improve economic growth and stabilise public finances.Rating agencies have been very cautious in applauding the political change, Rand Merchant Bank analyst John Cairns said. "We are [being] careful not to read too much into the comments, but at face value it suggests Moody’s ...
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