Moody’s says South Africa’s sovereign credit rating is still in investment grade, several days after it delayed a review of the country’s credit worthiness.
Moody’s is the last of the big three ratings agencies to give South Africa an investment-grade rating.
It said in a research note that the country’s credit rating was still at Baa3 with a stable outlook, despite lower economic growth.
It added that the research report did not constitute a rating action.
Economists say the decision by rating agency Moody’s to maintain the country’s investment grade has brought more certainty in the local economy.
Economic Commentator Azar Jammine says the country’s investment grade is secured for now.
“It affirms for now definitively that there is not going to be a change in the outlook which in turn means that it will be at least another year before a there’s any change of a downgrade. And in Moody’s case such a downgrade would have taken us to junk and by rules SA would have been compelled to see its bonds falling out of the World Gov Bonds Index. The rand is not likely to be under less pressure.”
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