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Moody`s upgrade shows "SA on the right
track"
Reacting to Moody`s upgrade of SA`s country ceilings
for foreign currency debt and bank deposits to Baa1
from Baa2, Brait`s Colen Garrow said in an I-Net
Bridge report that this was a resounding acknowledgment
that the country has got its policy mix right. Garrow
said that one significant spin off from the news
was that the spread on the SA Reserve Bank`s syndicated
loan, which was raised in July last year, could
be renegotiated, taking the pressure off the country`s
finances. He added that the highlight was that SA
would now be a more attractive destination for foreign
direct investment, putting it alongside countries
such as Malaysia - the country now also only needs
to move one notch up to be on the same level as
countries such as China. The upgrade also meant
that the major international asset managers that
run the large capital market funds will be able
to assign a greater weighting in the debt markets
to SA. |
