South Africa is seen to be on a positive growth path and decisions made attest to the willingness of government and its leadership to achieve higher growth rate. This is Moody’s view expressed on a report that was issued on the the 6th of May 2016.
President Zuma’s decision to exe finance minister Nene and replace him with a more respected minister Pravin Gordhon contributed positively on Moody’s assessment of South Africa.
“Moody’s continues to assess South Africa’s institutional strength as high… South Africa’s monetary and fiscal institutions have proven to be sound over time. The reappointment of a respected former finance minister to the post following the intervention of the ANC leadership late last year, along with the more ambitious budget that the minister tabled in February, demonstrated determination to bring the public finances under control,”read Moody’s report.
The Democratic Alliance had predicted that Moody’s would downgrade South Africa to a junk status. After Moody’s report spoke against DA’s prophecy, there has been no single statement from the party.