Investors Service, Moody’s has improved its outlook on South Africa’s credit rating from negative to stable.
The credit rating agency has attributed its upgraded assessment on South Africa due to better revenue from high commodity prices that support the government’s efforts to rein in debt and reduce budget deficits.
In a statement released last night, Moody’s noted the likelihood of the government’s debt burden stabilising over the medium-term.
Global ratings agency Fitch moves SA’s sovereign credit rating from negative outlook to stable:
Despite some improvement in the country’s outlook, the company kept the ratings at junk status.
It noted that risks related to weak state-owned companies and social spending remain a concern.
It has also commended the government for showing its ability to re-prioritise its spending including its commitment to fiscal consolidation.
The National Treasury has welcomed Moody’s decision to raise its outlook to stable.