SA braces for latest credit rating review from Moody’s

A Moody’s sign is displayed on 7 World Trade Center, the company’s corporate headquarters in New York, February 6, 2013. REUTERS/Brendan McDermid

The rating’s agency downgraded the country to one notch above sub-investment grade with a negative outlook in June.

Moody’s is expected to release its latest ratings review of South Africa on Friday.

The rating’s agency downgraded the country to one notch above sub-investment grad e with a negative outlook in June.

It also downgraded five of the country’s largest banks and four insurance companies.

Lesiba Mothata, the executive chief economist at Alexander Forbes Investments, says Moody’s is unlikely to change its rating.

“On the local currency, it could remain on a negative view. I don’t think they’ll change that outlook now.”

Economist at ETM Analytics George Glynos agrees, adding that not much of the country’s policies have changed since the last review.

“Ratings agencies don’t worry so much about who’s in power as much as they worry about whether those in powers are doing a good job or bad job.”

Economists say this week’s vote on the motion of no confidence in President Jacob Zuma won’t have an impact on the decision by Moody’s.

EWN