Moody’s says that it could upgrade South Africa’s credit rating if the government successfully implements structural reforms to increase economic growth and stability.
These reforms targeting state-owned companies, to limit unforeseen liabilities would help increase ratings. Ensuring that the country doesn’t allow for uncontrolled debt and rising liabilities can also increase rating.
Moody’s say that state-owned enterprises finances are the main concern in recent years. Moody’s one of the three majors credit rating agencies that assesses South Africa’s debt at investment grade.
Last year the other two rating agencies S&P Global Ratings and Fitch Ratings Ltd, Lowered South Africa’s investment ratings which weakened the rand and put pressure on yields.