Moody’s mum on SA credit rating, possibly just biding its time
Rating agency Moody's on Friday declined to publish a review of South Africa's debt rating as it was scheduled to do.
The rating agency gave no reason for the delay, but Efficiency Group economist, Francois Stofberg, said the rating agency took the safe route given that the country will go to the polls in May.
"I believe currently we see a lot of uncertainty, especially in our currency market, and until we actually know what will happen with the elections, if Ramaphosa will win and at what magnitude, I think the uncertainty will remain,” said Stofberg. "They want some more answers before they make a decision like that."
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He adds that it’s good news that Moody's didn't downgrade South Africa to junk status.
"I think although they didn't say when they will announce the numbers, it will be prudent for them to wait until the elections to see if the President and his inner circle will, in fact, introduce decisions they have been alluding to," said Stofberg.