Tag Archives: Moody’s
Moody’s: Latest News
Reuters, 1:01 am
Gordhan is leading a team to London, Boston and New York provide an update on the most recent South African developments, “engage constructively with investors and share the government’s thinking behind its’ latest policy proposals.” Investors are concerned about rising political tensions in the ruling ANC, which is due to vote this year to replace President Jacob Zuma as ANC leader. For investors, Gordhan is the face of stability. Talk that Zuma might fire him has rattled financial markets.
Dana Sanchez, 5:02 pm
In a sign that local credit ratings are becoming more lucrative in Africa, U.S. buyout firm Carlyle agreed to become the largest shareholder in Africa’s largest rating agency. GCR rates more credits on the continent than giants Fitch, Moody’s and S&P. Growth is constrained in the present credit ratings system, said the president of the BRICS New Development Bank. The Big 3 rate over 90% of the global sovereign ratings market. GCR specializes in national-level ratings, which rely less on a country’s sovereign rating.
Peter Pedroncelli, 6:02 am AFKI Original
Despite all of the issues plaguing South Africa at the moment, the country may manage to avoid a ratings downgrade in 2016. After surviving the potential downgrade of the country’s investment grade credit rating in June this year, the ratings agencies are set to pronounce judgement on South Africa once again in the coming months, and there is a risk that the country could be downgraded to below junk status. Here are 12 reasons why South Africa will avoid a ratings downgrade this December.
Staff, 3:04 pm
Efforts to set up a BRICS credit rating agency hit a roadblock Sunday. China is concerned and not in favor. Some members worry about lack of credibility and access to dependable data as they take on Wall Street’s Big 3 — S&P, Fitch and Moody’s. Fraud charges against South African Finance Minister Pravin Gordhan have raised fears the country is moving closer to a junk rating by Wall Street credit ratings services.
Dana Sanchez, 6:01 pm
South African public protector Thuli Madonsela was due to release a report Friday involving allegations that the Gupta family acted on behalf of President Jacob Zuma. Zuma’s office said Thursday that the report is on hold by court order. Undermining key South African institutions like courts, treasury, and the South African Reserve Bank would see the country likely downgraded to junk status, rating agency Standard & Poor’s (S&P) said Thursday.
Dana Sanchez, 10:39 pm
The rand is becoming one of this year’s best trades. As it continues to strengthen, ratings agency Moody’s said the chance of a credit downgrade for South Africa is less than 50 percent. A credit ratings cut is likely if economic growth falls below South Africa’s estimated 0.2 percent this year. However some analysts say the rand’s rally could be short-lived and it could fall back down to 17 per dollar before the end of 2016.
Kevin Mwanza, 11:04 am
The South African rand could strengthen if credit rating agencies downgrade the country’s debt to junk status at the end of this year, according to economist Dawie Roodt. The country’s struggling economy is facing possible credit downgrades by the global rating agencies Moody’s, Standard & Poor’s and Fitch by the end of the year after escaping the cut in June.
Dana Sanchez, 3:44 pm
Fifteen countries have had their investment-grade ratings revoked including India — twice. It took an average of seven years to regain their status. In May, South Africa escaped a downgrade from credit rating firm Moody’s, which held its rating at Baa2. Fitch is expected to issue its review next week. Like S&P, Fitch rates South Africa one rung above subinvestment grade.
Dana Sanchez, 1:06 pm
Ratings agency Moody’s on Friday lowered its outlook for the South African banking system from stable to negative, citing deteriorating operating conditions over the next 18 months. This sent banking shares lower, Reuters reported. “We have expected the lower outlook for a while,” said Graeme Korner, director at fund manager Korner Perspective, which invests in banks. “We think the earnings of the banks will be OK in spite of these concerns because the fact is South African banks are very good value and pay good dividends.”
Kevin Mwanza, 4:02 am
Global credit rating agency Moody’s downgraded Africa’s two largest oil producers, Nigeria and Angola, as it cut ratings on four African economies over the impact of lower oil prices on the international market. Moody’s said it was concerned over the impact depressed oil prices have on the liquidity, balance sheet and credit worthiness of Nigeria, Angola, Gabon and the Democratic republic of Congo (DRC).
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