JOHANNESBURG – The decision by Moody’s to keep its investment rating for the country above sub-investment grade has been broadly welcomed.
The rating agency postponed giving a review last Friday and it’s now given clarity on its views on South Africa’s economy.
In its credit opinion report, which does not constitute a rating action, Moody’s said South Africa’s credit rating remains at BAA3 with a stable outlook.
Moody’s said it expects South Africa’s credit profile to remain in line with those of other BAA3-rated sovereign nations.
Political economist Nic Borain said the rating agency wants to see progress.
Senior lecturer at Wits University Lumkile Mondi said the government must now use this reprieve to address a number of problems facing the economy including state-owned enterprises.
Moody’s decision has been welcomed in many quarters, with the rand strengthening.