{"id":15017,"date":"2012-09-28T05:04:27","date_gmt":"2012-09-28T03:04:27","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/update-3-moodys-cuts-south-africas-govt-bond-rating-to-baa1\/"},"modified":"2012-09-28T05:04:27","modified_gmt":"2012-09-28T03:04:27","slug":"update-3-moodys-cuts-south-africas-govt-bond-rating-to-baa1","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-3-moodys-cuts-south-africas-govt-bond-rating-to-baa1\/","title":{"rendered":"UPDATE 3- Moody’s cuts South Africa’s gov’t bond rating to Baa1"},"content":{"rendered":"

\t\t<\/span><\/p>\n

(Adds government reaction, analyst comment)<\/span><\/p>\n

<\/span><\/p>\n

JOHANNESBURG\/NEW YORK, Sept 27<\/span> (Reuters) – Moody’s Investors
\nService cut South Africa’s government bond rating by one notch
\nto Baa1 from A3 on Thursday, citing worries about the country’s
\ninstitutions as well as future political stability and room for
\npolicy maneuvering.<\/p>\n

<\/span><\/p>\n

The main driver of the downgrade “is Moody’s lowered
\nassessment of institutional strength to ‘moderate’ from ‘high,’
\nan important factor in the rating agency’s judgment of a
\nsovereign’s economic resiliency,” it said in a statement.<\/p>\n

<\/span><\/p>\n

The rating agency also cited concerns around the negative
\ninvestment climate – from creaking infrastructure to worries
\nabout South Africa’s future political stability.<\/p>\n

<\/span><\/p>\n

“Government remains committed to taking the necessary
\nmeasures to lift the growth potential and competitiveness of the
\nSouth African economy,” the country’s government said in a
\nstatement.<\/p>\n

<\/span><\/p>\n

“The core of South Africa’s policies remains stable and
\npredictable.”<\/p>\n

<\/span><\/p>\n

Investor sentiment has been soured by a series of wildcat
\nstrikes over the past weeks that have debilitated production in
\nthe world’s top platinum producer and No. 4 gold producer, and
\nthe government has been criticized as ineffective and out of
\ntouch.<\/p>\n

<\/span><\/p>\n

The violent rise of AMCU – an upstart union in the sector –
\nis posing the most serious challenge to the unwritten pact at
\nthe heart of the post-apartheid settlement: that unions aligned
\nwith the ruling African National Congress (ANC) deliver modestly
\nhigher wages for workers, while ensuring labor stability for big
\nbusiness.<\/p>\n

<\/span><\/p>\n

“As the strikes in South Africa spread both within the
\nmining industry and to elsewhere in the economy we think the
\nprospect for further downgrades from other agencies remains very
\nhigh,” said Peter Attard Montalto, an emerging markets economist
\nat Nomura.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

(Adds government reaction, analyst comment) JOHANNESBURG\/NEW YORK, Sept 27 (Reuters) – Moody’s Investors Service cut South Africa’s government bond rating by one notch to Baa1 from A3 on Thursday, citing worries about the country’s institutions as well as future political stability and room for policy maneuvering. The main driver of the downgrade “is Moody’s lowered […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-15017","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/15017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=15017"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/15017\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=15017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=15017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=15017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}