Moody’s holds off on ratings announcement on SA’s creditworthiness
Ratings agency adopts a wait-and-see approach, with a report now only likely after the general election on May 8
Moody’s Investors Service surprised the market early on Saturday morning when it decided not to release a report on SA’s sovereign credit rating. Although the credit rating agency was scheduled to make an announcement, it can delay releasing a report, and then make a move on an unspecified date, as it did in October 2018. SA’s debt with the agency is currently rated at Baa3, one notch above junk status, with a stable outlook. “The surprise decision by Moody's not to update SA's sovereign credit rating at this stage is welcome, as it gives the country further breathing space to get its economic and fiscal house in order,” North West University Business School economist Raymond Parsons. Analysts were divided on what action Moody’s would take. Half the participants in a Bloomberg survey expected it to maintain a stable outlook on its local and foreign currency debt, with the remainder predicting a reduction to negative. Those who did not foresee a change say Moody’s may adopt a wait-an...
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