By – SAnews.gov.za
Government has welcomed ratings agency Moody’s decision to affirm South Africa’s investment grade credit rating and the decision to revise the country’s credit outlook from negative to stable.
In its decision communicated on Friday, Moody’s said the previous weakening of national institutions was gradually reversing and this supported economic recovery.
The ratings agency put South Africa’s long term foreign and local currency debt rating at ‘Baa3’. The action follows Moody’s decision to sovereign’s credit rating under a 90-day review for possible downgrade commencing on 24 November 2017.
According to Moody’s, the new administration, under President Cyril Ramaphosa, faces significant opportunities and challenges.
“Moody’s indicated that steady progress in meeting the objectives set out in the President’s State of the Nation Address is essential for the country’s economic and fiscal prospects to be sustained. They further note that political, policy and practical challenges of meeting diverse economic, social and fiscal objectives cannot be underestimated,” Treasury said.
It said to improve South Africa’s investment and economic prospects, the government continues to work diligently on practical steps to provide the necessary policy certainty. Treasury said in a statement.