SOUTH Africa’s Chamber of Mines said it welcomed a decision by credit ratings agency, Moody’s, to maintain the country’s local and foreign currency debt ratings at Baa3, saying that efforts under President Cyril Ramaphosa to restore institutional legitimacy, as well as improve regulatory certainty, should be maintained.
“The Chamber remains of the view that a concerted leadership focus on creating an attractive policy, regulatory and governance environment, through ethical leadership, good governance and the adoption of competitive, stable and predictable policies is critical to ensuring that the mining industry and South Africa as a whole returns to its rightful position as an attractive investment destination,” it said in a statement.
Moody’s also decided in its 90-day review to adjust its outlook from negative to stable. The decision came after the post-budget international investor roadshow undertaken by government, business, and labour leaders which included interaction with all three rating agencies in the US and London.
“The rand remained flat against the dollar and was last trading at R11.72/74. Analysts said Moody’s decision was largely anticipated and had priced it in to the market.
