Elna Moolman, Senior Economist at Standard Bank, stated that the decision by the global credit rating agency Moody's was anticipated.
Moody's chose not to downgrade the countrys credit rating, keeping it at Ba2, due to factors such as strong and independent institutions like the judiciary and the central bank, a robust and well-developed financial sector, and a solid external position.
This comes after SampP revised its ratings outlook for South Africa from stable to positive, citing improvements in the reform program and the country's economic growth potential.
However, South Africa's credit rating remains in the sub-investment grade category, which continues to affect borrowing costs and investor confidence.
Moodys also confirmed South Africas long-term foreign and local currency debt ratings at Ba2 and maintained a stable outlook.
