Moody’s Investor Services to announce SA credit rating decision

Posted On Friday, 25 November 2016 14:07 Published by
Rate this item
(0 votes)

Moody’s rating agency is expected to announce whether it will downgrade South Africa’s economy.

Jacob_Zuma

In May, Moody’s Investor Services affirmed South Africa’s government bond long and short term ratings of Baa2 with a negative outlook and P-2, respectively.

Government has said that it has done what it could to avert a ratings downgrade.

Answering oral questions in the National Assembly on Wednesday, President Jacob Zuma said government has taken steps to satisfy the concerns expressed by ratings agencies.

“I believe we have indeed done a lot, working together, to create favourable conditions for economic growth and to stave off any downgrade,” he said.

He said ratings agencies form part of many monitoring mechanisms that encourage the country to improve governance in both the public and private sectors.

President Zuma said government has forged partnerships with business and labour to come up with initiatives aimed at reigniting growth and improving the global competitiveness of the country.

Ahead of the rating agency’s arrival in South Africa earlier this month, Finance Deputy Minister Mcebisi Jonas said the country must preserve its sovereign credit rating.

Speaking at the 2016 Association of Black Securities and Investment Professionals (ABSIP) Financial Service Conference in Johannesburg, the Deputy Minister said South Africa needs to build a faster growing and more inclusive economy.

Following the last meeting of the Monetary Policy Committee (MPC), Reserve Bank Governor Lesetja Kganyago said the bank expects better growth going forward.

At the July repo rate announcement, the central bank said it expects 0% economic growth.

However, this changed to 0.4% growth at the September announcement.

“The Bank’s forecast for economic growth for 2016 has been revised upward from 0% to 0.4%. The forecasts for the next two years have been increased marginally by 0.1 percentage points to 1.2% and 1.6 % respectively,” Kganyago said on Thursday.

Last modified on Friday, 25 November 2016 14:27

Most Popular

Bentel Associates International scoops two awards at The African & Arabian Property Awards 2020

Oct 06, 2020
Marriott Hotel
The African Property Awards is a novelty awards scheme instituted to recognize and…

Inospace acquires its 26th business park

Oct 06, 2020
Rael Levitt
The record-low interest rate and favourable lending environment has spurred Inospace, a…

Iconic Sandton building given a facelift

Sep 23, 2020
3 Alice Lane Building
Since 2016 the City of Johannesburg has embarked on an ambitious programme to renovate…

Unprecedented buying activity in East London and Port Elizabeth housing markets

Oct 06, 2020
PE Sardinia Bay  smallholding
Since June this year, residential property sales have escalated in the Eastern Cape hubs…

Attacq’s client-centric approach stands it in good stead

Sep 22, 2020
Deloitte Waterfall City Aerial picture
Attacq Limited (“Attacq”), The South African-based REIT today announced its financial…

Please publish modules in offcanvas position.