South Africa will know by the end of Friday whether credit rating agency Moody’s will downgrade it to so-called junk status or not.
Economists say if Moody’s retains South Africa’s foreign and domestic currency debt at investment grade that is above junk – the investment community will see that as approval for President Cyril Ramaphosa.
The investors do not only want to see economic growth but evidence that the ANC can get rid of corruption and deal with poverty and unemployment.
There is optimism that the country is on track to address Moody’s concerns. A delegation of government and business has recently been on a roadshow to London and New York, interacting with ratings agencies and investors in an attempt to avert a downgrade by Moody’s. Chief Economist of Econometrix, Dr Azar Jammine is optimist…
Economist Lumkile Mondi says South Africa has very few risks to force credit rating agency Moody’s to downgrade it to so-called junk status.
If Moody’s retains South Africa’s foreign and domestic currency debt at investment grade that is above junk – the investment community will see that as approval for President Cyril Ramaphosa.
