ANTICIPATION GROWS AS SOUTH AFRICA AWAITS ANNOUNCEMENTS ON ITS CREDIT RATING
The countdown has begun to the first announcement by international credit ratings agencies regarding their latest assessments of South Africa’s global credit rating.
The three leading international rating agencies — Moody’s, Fitch and Standard and Poor’s (S and P) — are currently conducting their latest assessments of the country’s ability to pay its debts to foreign lenders. Moody’s is expected to be the first to announce its decision on Friday.
The international credit rating agencies appear to be holding South Africa’s financial destiny in their hands. Their assessment teams have been in the country since last week, meeting various stakeholders, including Deputy President Cyril Ramaphosa.
The ratings agencies have also met representatives of business and labour to get their views about developments in the economy and politics of South Africa.
The Congress of South African Trade Unions (Cosatu), the biggest umbrella labour confederation, has said it will not bother to meet them. In fact, it feels that the ratings agencies are being given more attention than they deserve.
Moody’s currently rates South Africa at two notches above junk status. A downgrade by them, if at all, on Friday might not necessarily spell disaster just yet.
It is the verdict from S and P which is most worrying, as it currently has the country at just one notch above junk status with a negative outlook. S and P is set to announce its latest rating report next week.
Fitch, which is the smallest of the three agencies, also has the country one notch above junk with a positive outlook, but its has not said when it will announce its decision.
Source: NAM NEWS NETWORK.