Moody's expected to keep rating unchanged

JOHANNESBURG - Moody's is expected to keep its rating and outlook for South Africa unchanged if it delivers a review on Friday.

Moody's has been the most lenient of the three major ratings agencies, keeping the country on the last rung of investment grade.   

Economist Isaah Mhlanga says the clean-up at state-owned enterprises, more stable institutions and the appointment of Tito Mboweni as Finance Minister are all credit positive.

Investment grade status is sought after for a few reasons. It supports the case for investors to plough into the country.

READ: Moody’s cuts SA's growth forecast

But a good credit rating also makes the cost of borrowing cheaper.

The major setback though is our dismal growth rate, and ratings agencies worry that slower growth means slower business activity and lower tax revenue collection.

But analysts believe Moody's will spare us if it does release a review this week.