world
Moody's Stops Rating South African Debt
Global credit ratings agency Moody's has withdrawn its license in South Africa, shifting focus to cross-border services while endorsing its subsidiary GCR for local markets. Separately, South Africa's social grant agency reassured recipients that payments will proceed on schedule despite recent Post Office changes, introducing an online verification portal to reduce office visits.
SemaforAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Global credit ratings agency Moody's has surrendered its license to operate in South Africa, a move that opens opportunities for its subsidiary GCR, the continent's largest locally based ratings firm. The decision aligns with Moody's strategy to prioritize services for cross-border investors and African issuers seeking international funding.
For domestic markets, Moody's directed clients to GCR, which operates under its own methodologies and branding. The exit follows criticism of global agencies for using offshore models that some African leaders argue fail to capture local contexts, highlighted by Afreximbank's recent split from Fitch.
Moody's stated the change would not impact its Ba2 rating on South Africa's sovereign debt, which remains two notches below investment grade. South African regulators granted banks 24 months to adjust capital models reliant on Moody's local ratings.
“Moody’s said its decision was part of a wider shift to focus on serving “cross-border investors and African issuers looking to attract international funding.””
Africa's social grant agency has moved to calm concerns over payment disruptions following cuts at the Post Office. Older recipients are set to receive their grants on Tuesday, with disability grants scheduled for Wednesday and children's grants later in the week.
The agency introduced an additional payment day for those missing regular dates due to review processes. Chief executive officer Themba Matlou emphasized that current systems safeguard beneficiary interests and combat fraud from internal and external sources.
