THURSDAY, 11.00AM
THE US-based Duff & Phelps Credit Rating Company has awarded South African rand-denominated stock an “A” investment grade, the highest rating so far given to SA debt.
A high investment rating increases the likelihood of a country’s attracting foreign investment, and allows it to obtain foreign credit at improved rates. The finance ministry says it views that rating as extremely positive for the country and a confirmation of the confidence investors have in the country.
Markets, however, were largely unimpressed with the new rating, preferring instead to wait for Standard & Poor’s expected reassessment of SA’s foreign currency rating early next year.
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