PHOTO: PYMNTS.COM
National Treasury has welcomed rating agency Moody's move to reaffirm South Africa’s Ba2 rating and maintain the country’s stable outlook.
The agency says this reflects the country’s credit strengths from effective, core institutions such as the judiciary and the central bank, and a robust, deep financial sector.
Moody’s also acknowledged that the government of national unity would pursue structural reforms and ease growth bottlenecks.
Treasury said that this showed that the country’s economic reforms were beginning to bear fruit.
“Government welcomes Moody’s acknowledgement that the Government of National Unity (GNU) will pursue structural reforms and ease growth bottlenecks,” it said in a statement.
“Government is pursuing policies to achieve rapid, inclusive and sustainable economic growth. Economic reforms are beginning to bear fruit; electricity availability has improved; the logistics system is stabilising, and the cost of doing business is declining in some areas of the economy.
“Government is also transforming the way it prepares and delivers infrastructure projects. It is mobilising private sector resources that will augment public-sector capability and provide new channels for financing.”
S&P Global recently upped its outlook on South Africa from stable to positive, citing improved reform and growth potential.
However, S&P and the third big global ratings agency, Fitch, has the country one notch below that of Moody’s.
