Tag: credit rating

It’s still early enough in the year to review your spending habits, getting your finances into shape and implementing a financial plan that will ensure you get back on track. According to the 2019 Consumer Credit Market Report carried out by the National Credit Regulator, 59% of employees are stressed about their finances with less than 15% of South Africans able to afford retirement.

The probability of a credit rating downgrade from Moody’s does not necessarily equal ‘good’ news for SA’s economic prospects. It is merely the calm before the storm. It would be good news if SA had embarked on one or two of the required reforms – however, this has yet to happen. This temporary reprieve from Moody’s gives SA time to implement some of the changes required to right a seriously listing ship.

The last few months have left South Africans reeling. A volatile and unstable economy, concerns around government corruption, crime at an unsurpassed high and soaring price, are leaving citizens disheartened and concerned about their future in our country.

Finance Minister Tito Mboweni’s maiden Budget speech is a structural reform budget, which aims to reduce the immediate fiscal and economic risks posed by Eskom’s and other State Owned Enterprises’ (SOEs) unsustainable balance sheets and operational models.

The 2018 Medium Term Budget Policy Statement (MTBPS) will be a key determinant for SA’s credit ratings. A Moody’s Investors Service credit ratings decision was initially scheduled for 19 October 2018. Moody’s is now expected to release its statement on South Africa's sovereign credit rating after Finance Minister Tito Mboweni delivered the MTBPS.

Victor Mphaphuli | Co-head | STANLIB Fixed Income | media@stanlib.com | www.stanlib.com | South Africa’s economic history since 1994 when the country first asked global...