South Africa, JOHANNESBURG – Moody’s and S&P Global are expected to release their ratings assessments of South Africa later on Friday amid worries that the country could be pushed further into sub-investment grade.
The South African Reserve Bank’s monetary policy committee announced on Thursday that rates would remain unchanged while the economy showed some signs of picking up.
However, the agencies might be more critical of what’s happening here at home.
RMB chief economist Ettiene le Roux said that Reserve Bank Governor Lesetja Kganyago has been clear about growth forecasts.
“I think the governor explained it quite nicely why they are slightly less pessimistic about the growth for this year. It basically has to do what they said it would be, a very strong down stack when you think about the economy in the third quarter.”
Investec chief executive Fani Titi said that there needed to be changed: “We need structural reforms reimplemented and I think South Africa could begin to see some green shoots.”
However, Kganyango said that Moody’s and S&P Global may delay pronouncing on their ratings.
“They may decide not to announce anything by the way and wait.”
He said that either way, the bank would respond accordingly.