ratings agencies Archives

24 May 2021

Government acknowledges pressures SA’s credit ratings face

By Staff Writer

“Government acknowledges the pressures the country’s credit ratings face and remains committed to addressing them,” the National Treasury said on Friday evening, following the latest decisions by Standard & Poor (S&P) and Fitch rating agencies to leave South Africa’s investment grade and outlook unchanged.

05 Mar 2019

Step forward for SA, but long road ahead … … and breathing space likely from the rating agencies

By Janice Roberts

Maarten Ackerman, Chief Economist and Advisory Partner, Citadel. The Q4 2018 GDP growth numbers are encouraging in light of the tough environment that we have just emerged from. Given that we came out of a technical recession in 2018, the turnaround to see positive growth for the full year is heartening. And while it may...

27 Feb 2019

Why the 2019 budget speech might keep the rating agencies happy

By Janice Roberts

David French, Director of Tax Consulting at Mazars says that with the 2019 South African general election looming, many expected this year’s budget speech to largely be composed of populist messages aimed at voters. However, he points out that the Minister’s Speech in fact spoke directly to rating agencies with the goal of addressing some...

28 May 2018

'S&P decision broadly expected'

By Janice Roberts

It is Moody’s Rating Agency’s next assessment of South Africa – not Standard & Poor’s -that holds the key to the country’s continued avoidance of universal junk status. This is according to NWU School of Business Economist, Professor Raymond Parsons. ‘The decision by ratings agency Standard and Poor Global Ratings on Friday to leave South...

31 Jan 2018

Fitch Downgrades Eskom to 'BB-'

By Janice Roberts

THE FULL STATEMENT FROM FITCH RATINGS: Fitch Ratings has downgraded Eskom Holding SOC Ltd’s (Eskom) Long-Term Local Currency Issuer Default Rating (IDR) and unguaranteed local currency senior unsecured ratings to ‘BB-‘ from ‘BB+’ and maintained them on Rating Watch Negative (RWN). Fitch has also affirmed the government-guaranteed local currency senior unsecured debt ratings at ‘BB+’.

18 Dec 2017

Election of Ramaphosa has potential to build stronger SA

By Janice Roberts

The election of deputy president Cyril Ramaphosa as the new ANC president has great potential to build a bigger, stronger and better economy in the future. This is according to NWU School of Business and Governance Economist, Professor Raymond Parsons. ‘The decision by the watershed ANC elective conference today to choose Deputy President Cyril Ramaphosa...

28 Nov 2017

Getting fiscal 'mix' right in Feb 2018 Budget a major determinant of investment status

By Janice Roberts

Credibility and confidence in economic policy will be key factors in evaluating the latest fiscal response to recent credit rating agency decisions. That’s the word from NWU School of Business and Governance Economist, Professor Raymond Parsons. “The decision by President Jacob Zuma to instruct the Presidential Fiscal Committee to actively tackle four key areas of...

26 Nov 2017

Nedbank 'disappointed' by S&P's downgrade of SA’s local currency sovereign debt

By Janice Roberts

Nedbank is “disappointed” by S&P Global’s decision to downgrade South Africa’s local currency sovereign debt ahead of key events such as the ANC’s elective conference in December and the national budget in February next year. While Nedbank welcome Moody’s decision to maintain its investment-grade rating of South Africa’s government debt for now, it notes its...

26 Nov 2017

S&P and Moody's send strong message to SA

By Janice Roberts

The latest decisions by S & P Global Ratings and Moody’s on SA’s investment rating, although less severe than widely expected, nonetheless send another strong message to SA to get its house in order sooner rather than later. This is according to NWU School of Business and Governance Economist, Professor Raymond Parsons.

23 Nov 2017

Facing SA’s fiscal failure

By Janice Roberts

By Arthur Kamp, economist at Sanlam Investments. Attention is firmly fixed on the coming round of sovereign debt rating decisions. Whatever the outcome of these reviews, it is clear that in the absence of reform, government’s fiscal position is unsustainable. Its revenue collection track record has been eroded and additional spending priorities and liquidity problems...

15 Jun 2017

Growth projection may not be realised: Minister Gigaba

By Janice Roberts

SA’s 2017 growth projection of 1.3% may not be realised, Finance Minister Malusi Gigaba said in a speech today.

10 May 2017

Junk status: Diversification is key to protect against market shocks

By Janice Roberts

The recent downgrade of South Africa’s investment grade status to junk by more than one international ratings agency has highlighted the importance of having a diversified investment portfolio.