As the alleged wrongdoing at Bishops Diocesan College shows, equating wealth with virtue is a bad idea, writes Helena Wasserman.
High level clouds. Mild.
Moody's announced that the rating of Mangaung Metropolitan Municipality, in the Free State, has been downgraded three notches from Ba3 to B3.
The erosion of Turkey’s creditworthiness is a warning signal for South Africa, and investors are ignoring it, according to Informa Financial Markets.
S&P has SA's foreign currency debt ranked at junk status for two years now, mostly because of the poor economic growth, according to an official.
Business Unity South Africa has described Moody’s decision to delay the assessment of South Africa's credit rating as a “welcome reprieve” and urged the country to use the breather to get its fiscal house in order.
Moody's decision to skip the assessment of South Africa's credit rating is good news for the rand, analysts have said.
Moody's Investors Service, the sole global ratings agency that still has SA's sovereign debt at investment grade, is expected to make an announcement on the country's credit rating on Friday evening.
South Africa may have to pay a premium if it taps international bond markets before a credit-rating review later this month and elections in May, according to investors who attended meetings with Treasury officials in London.
Ratings agency Moody's says that splitting Eskom into three entities may make the utility's cost structure more transparent, but the split does little to address the debt-laden power utility's financial challenges.
The ratings agency says in 2019 and 2020, when it expects SA's economic growth rate to pick up to near 2%, per capita GDP increases will largely be cancelled out by population growth.
S&P affirmed SA's long-term local currency debt at BB+, the first notch of sub-investment grade. It kept the country's long-term foreign currency rating at BB, which is two notches below investment grade.
Moody's has applauded the financial support government committed to extend to Eskom, but said the utility’s operating costs, as well as debt owed to it by municipalities, could not be ignored.
Barely three years after SA managed to get its highest-ever investment-grade ratings from two of the three main credit-rating companies, the global financial crisis was threatening to reverse that progress. The country was one of multiple emerging markets in the companies’ cross-hairs.
A Treasury official has warned that foreign investors remain concerned about the risks posed by Eskom.
The decision by Moody's not to update its ratings on SA's sovereign debt is a reminder of government's urgent to do list, the CEO Initiative and the Banking Association of SA have said.
This means the country's sovereign credit rating remains unchanged at Baa3, the last rung of investment grade, with a stable outlook.
Trade and Industry Minister Rob Davies says he hopes Moody's will consider recent improvements when it makes its decision on the country's credit rating.
Ratings agency S&P has kept Eskom at junk status, but has revised its outlook from negative to stable.
The government is prioritising regaining SA's investment grade rating, according to Finance Minister Tito Mboweni.
The ratings agency says that expropriation of land without compensation is not expected to significantly hamper investment levels flowing into South Africa, as the rule of law and enforcement of contracts is expected to remain in place.
Moody's has noted weak state-owned enterprises, structural economic bottlenecks and policy uncertainty among SA's credit challenges.
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