Monday, 26 March 2018

South Africa dodges junk status and gains a stable economic outlook.

A recovery of the country’s institutions under new leadership, improved growth prospects, and clear and stable fiscal plans are the key reasons behind rating agency Moody’s decision to not junk South Africa’s sovereign debt and leave it unchanged.

Moody’s kept the country’s local and foreign debt at Baa3, which is investment grade and just one notch above junk. It revised its outlook from negative to stable.

“The confirmation of South Africa’s ratings reflects Moody’s view that the previous weakening of South Africa’s institutions will gradually reverse under a more transparent and predictable policy framework. The recovery of the country’s institutions will, if sustained, gradually support a corresponding recovery in its economy, along with a stabilisation of fiscal strength,” said the institution in a statement.

By Tebogo Tshawane.

Full story at Mail & Guardian.

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