SA credit rating affirmed

Review by financial services firm follows recent by Fitch and S&P.

- Ina Opperman

Moody's Ratings has affirmed South Africa's sovereign credit rating at Ba2 and maintained the stable outlook thanks to the country's credit strengths from effective, core institutions, such as the judiciary and the central bank, a robust, deep financial sector and a solid external position.

Moody's ratings review follows recent credit ratings declarations by Fitch and S&P.

However, Moody's also acknowledged chronic challenges posed by the country's extensive inequalities which hamper reform progress and fuel social risk, as well as persistent structural constraints on economic growth and a relatively high and costly debt.

"The government of national unity (GNU) has committed to continue the reform momentum of the previous administration, which began to show progress in the energy sector.

"However, we anticipate only a modest acceleration in economic growth.

"In turn, subdued growth complicates the challenge of preserving debt sustainability while meeting social demands and stimulating investments in critical network infrastructure, particularly in the energy and logistics sectors."