Moody's stabilizes South Africa view

Moody's Investors Service said it changed the outlook on the government of South Africa to stable from negative and affirmed the issuer’s Ba2 long-term local and foreign-currency issuer and senior unsecured debt ratings.

“The key driver behind the decision to change the outlook to stable is the improved fiscal outlook that raises the likelihood of the government's debt burden stabilizing over the medium term. While risks related to weak state-owned enterprises (SOEs) and social demands remain, they are consistent with a Ba2 rating. Indeed, over the last two fiscal years, the government has shown it was able to re-prioritize its spending while staying committed to fiscal consolidation, which Moody's expects will remain the case going forwards,” the agency said in a press release.

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