Moody's keeps SA at investment grade | IOL News

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Moodys issued a credit opinion maintaining South Africa's sovereign credit rating at investment grade.

Cape Town - Moody's on Tuesday issued a credit opinion maintaining South Africa's sovereign credit rating at investment grade.

"While economic growth will remain slow and fiscal strength will continue eroding, we expect South Africa's credit profile to remain in line with those of Baa3-rated sovereigns," Moody's said. Moody's named political divisions, growth-limiting structural economic bottlenecks, and the weaknesses of state-owned enterprises as the credit challenges South Africa faces.

On the positive side, the agency listed the strength of institutions like the judiciary and the South African Reserve Bank, the country's well-capitalised banking sector and relatively deep financial markets as well as the government's low level of foreign currency liabilities.

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