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 Scared to get a personal loan? Find out the facts first

Taking out a personal loan can be daunting. When you borrow a large sum of money, you may fret over whether you’ve done the right thing and whether you’ll manage to pay it off. But sometimes the best way to deal with fears is to face them head-on.

5 Ways to borrow: Choose carefully

There are many ways to obtain credit. It’s up to you to choose which form is suitable for your needs. But before you make that choice, it’s important to weigh the pros and cons of each.

Four steps to rethinking your budget

We all think about budgeting at the end of each month. But before we know it, the new month has started. When last did you actually sit down and consider your spending habits?

Why can fund managers only invest 30% of pension funds offshore?

When you invest in your pension fund or retirement annuity, it will be placed in various asset classes. Of this, you cannot invest more than 30% of your retirement abroad. We find out why.


Clicks Covid antibody test for R199

Price: R199
When: Daily
Where: Nationwide

2 Steaks for the price of 1 at Tiger’s Milk

Price: From R159
When: Thursdays
Where: Cape Town

Da Vinci's Monday Wings Special

Price: R145
When: Mondays
Where: Cape Town

Latest Guide

Guide to debt rehabilitation solutions