Moody's places three SA ratings on review
MOODY'S Investors Service, one of the world's biggest credit ratings agencies, on Friday announced it had placed three of SA's ratings on review, adding to the negative sentiment that has hit SA markets.
The news immediately sent the rand and bond yields weaker, with the rand losing 7c against the dollar while bond yields were up 20 basis points.
Moody's said it may cut SA's BAA1 rand-denominated debt, its BAA3 foreign currency debt country ceiling, and the BA1 rating assigned to SA's foreign currency bank deposits.
The agency cited the economy's inability to create new jobs; slow economic growth over the past two years; and recent financial market volatility as reasons.
Minister of Finance Trevor Manuel said he remained confident, based on underlying fundamentals, that SA's rating would be retained. Top of page