A Reuters poll of economists also shows that 16 out of the 18 surveyed expect Moody’s to keep the country’s foreign and local debt rating on hold.
If downgraded, South Africa will automatically lose its participation in the World Government Bond Index. The move could trigger a massive sell off in local bonds.
However, BLSA, which participated in a recent international road-show led by Treasury to the UK and the US, believes the country did its best to convey the message that it’s on top of dealing with issues highlighted by the ratings agencies.
Market players are treading carefully ahead of the announcement Friday, despite the general optimism.
Moody’s tends to deliver its ratings decision after the market closes. Some say this could enable investors to digest the information for a while before they can act. But come Monday morning, market reaction, particularly on the country’s bond and currency markets, will be clear.