Picture: REUTERS
Picture: REUTERS

THE Treasury will pull out all the stops when Moody’s officials visit SA next week to convince the agency not to downgrade the country’s credit rating.

Moody’s will be in SA next week for its annual review, according to a Treasury statement on Wednesday.

The Treasury plans to highlight measures adopted in the budget to accelerate fiscal consolidation and the implementation of the National Development Plan; steps taken to reinforce stable industrial relations; implementation of the R870bn infrastructure investment programme; progress made in resolving energy constraints; and strengthening governance at state owned companies.

These are all areas that ratings agencies have previously identified as areas of concern.

During the visit, the agency will assess the views of stakeholders in government, civil society, labour and the private sector on SA’s economy, whether sufficient progress can be made to stabilise and restore fiscal strength, and whether policy will stop the continuing erosion of government’s balance sheet.

A downgrade by Moody’s would put its credit rating in line with that of the other two major agencies, Fitch and Standard & Poor’s, who rate SA just one level above speculative grade or junk.

There has been very little reaction by the rand to the Moody’s statement, supporting views that the downgrade has already been priced in.

Finance minister Pravin Gordhan is on a roadshow in the US addressing investors on the budget and assuring them the country is a credible investment destination.