Guiding consumers since 2009

Moody’s affirms South Africa’s credit rating

By Danielle van Wyk

This week started on a note of relief as the ratings company Moody’s stayed South Africa’s rating grade. With this decision the country’s outlook changed from a negative to a neutral rating.

Emphasis was placed on increased transparency in institutions and improved growth aspects.

Moody’s rating was made against the backdrop of the election of President Cyril Ramaphosa, the recapturing of the state, the reappointment of finance minister Nhlanhla Nene and the Budget Speech.

“The sentiment towards South Africa has lifted markedly in the past four months. With the latest influx of good news, we could see the rand enjoying a favourable run in the short term,” said Andre Botha, dealer at TreasuryONE.

Other perks we may enjoy is increased economic growth in 2018, which could now be about 1.8%. This, in contrast to the 1.3 % forecast only a few months ago, said prof. Raymond Parsons from the North West University School of Business and Governance.

Another prediction is that the Moody’s rating may also encourage the South African Reserve Bank (SARB) to make a modest cut in interest rates at this week’s Monetary Policy Committee (MPC) meeting. Other factors that strengthen this prediction are a stronger rand and the lower inflation rate.

“Although the recent positive developments have gained SA a well-deserved reprieve from Moody's, there are still tough decisions needed to implement the structural reforms. This would ensure much higher and sustained economic growth over the longer term,” continued Parsons.

Recent Articles

Featured Are you entitled to your spouse’s pension after divorce?

Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.

Retrenched – what payments are you entitled to?

In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.

Do you want to settle your debt?

You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus. 

Can you afford a personal loan?

Taking out new debt is not always a choice. However, if you’re not pressed by a medical emergency or an unforeseen disaster, it’s worthwhile considering whether you can actually afford it. But what does it mean to “be able to afford a personal loan”? What percentage of your income should you not exceed dedicating to it? 

Deals

Eat for less on Tuesdays at Panarotti’s

Price: R59.99
When: Tuesdays
Where: Nationwide

Get discounts with Clicks ClubCard Seniors Programme

Price: Available on request
When: Daily
Where: Nationwide

Amani Spa Voucher Special

Price: R1000
When: Daily
Where: Cape Town, Jhb, and Port Elizabeth