Moody's keeps close eye on new leadership
Following President Jacob Zuma’s resignation on Wednesday‚ credit rating agency Moody’s said it will pay close attention to the new leadership’s response to South Africa’s economic woes.
Zuzana Brixiova‚ vice-president at Moody’s‚ said in a statement on Thursday: “Moody’s is closely monitoring developments in South Africa and is focused on the policy implications of ongoing changes in leadership.”
“The key point from a credit perspective will be the new leadership’s response to the country’s economic and fiscal challenges and progress in implementing reforms addressing them‚” she added.
SA’s credit rating with Moody’s Investors Service is one notch above junk status. While Moody’s has not confirmed when it will review the country again‚ it is likely to be after the 2018 budget policy statement next Wednesday.
South Africa was downgraded by S&P in November following an ill-received medium-term budget policy statement from Finance Minister Malusi Gigaba in October.
Moody’s said the medium-term budget policy statement signalled a change in policy direction that was credit negative.