Guiding consumers since 2009

Moody's give SA ratings the OK

By Staff Writer
www.timeslive.co.za: South Africa's credit ratings are safe for the time being, Moody's said in a briefing held on Tuesday, but these ratings could come threat if the government gave ground to its allies and adopted looser economic policies.

Moody's also predicted that the outlook for South Africa's A3 local and foreign currency ratings was stable and was unlikely to be revised in the next 18 to 24 months.

Kristin Lindow, Moody's senior vice-president and regional credit officer for Europe and Africa, said the administration of President Jacob Zuma had clarified economic policy direction.

"There was a lot of concern over whether [Zuma] would take the economy in a different direction. The relatively seamless transition helps to suggest that the policy stance has been continued and confirmed in a way that is very reassuring."

Relations between the ANC and its allies, Cosatu and the SA Communist Party, have been volatile over economic policy differences.

The trade union federation and the communists want the government to spend more, withdraw the Reserve Bank's mandate to hold consumer inflation at between 3% and 6%, and weaken the exchange rate.

Lindow reckons the floating exchange rate had worked and it would be difficult to target a level for the rand, which gained about 30% against the dollar last year.

"Almost no country is able to manipulate its currency ... for South Africa, being so small and so open, it would be nearly impossible," she said.

Moody's said that evidence that South Africa's economic growth potential was accelerating beyond 5% would lead to a ratings upgrade but, this was unlikely.

"We don't expect growth to resume at 5% for some time. We expect 3.5% to 4.5% growth in coming years," Lindow added.

Recent Articles

Featured New homeowner? Be aware of these extra expenses

You’ve overcome all the hurdles of buying a home. You’ve managed to pay your deposit and your closing payments, and now you’re a proud title deed holder. However, there are other expenses waiting around the corner. Are you prepared?

Your biggest credit conundrums – answered

Understanding your credit health is one of the most important factors in managing your finances. This is because it gives you insight into your debt, your borrowing ability, and your financial history. While many understand this, there are still many questions on how to do just that.

Avoid debt collectors, choose debt counselling

There are two things you can do when you are struggling to pay your debt. You can either let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt.

Retail notes: easy investment option for new investors

Being a newbie in the world of investing can be challenging because you don’t know where and how to invest. With so many investment options, you could easily be befuddled. Justmoney looks at how retail notes can help you cut your teeth in the world of investing.   

Deals

Translux Student Discount

Price: Depends on destination
When: Daily
Where: Nationwide

Zimbali Senior Citizens Discount

Price: From R1342.00
When: Until 14 December 2019
Where: KwaZulu Natal

Free meal for kids at Mozambik Restaurant

Price: Free
When: Until 15 November 2019
Where: Johannesburg, Durban, Pretoria