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Global credit ratings agency Moody's has withdrawn its license in South Africa, shifting focus to cross-border services while endorsing its subsidiary GCR for local markets.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.
SemaforGlobal 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.
He noted the agency is verifying recipient details to ensure eligibility. To streamline the process, the agency launched an online portal called eLife Certification, allowing users to confirm information from home. Matlou urged those with internet access to use the portal and avoid branches, reducing wait times and travel.
He assured that administrative changes would not affect grant recipients. The updates come amid efforts to protect the payment system against criminal activities.
“The way our systems work currently, they are intended to safeguard the interests of our important beneficiaries," he said.”
These developments occur against a backdrop of economic adjustments in South Africa, where global financial shifts intersect with domestic social support mechanisms. The ratings agency move reflects ongoing debates about the accuracy of international assessments for African economies.
Meanwhile, the grant agency's actions address immediate public needs, ensuring continuity for vulnerable populations. Sources indicate no direct link between the two events, but both highlight efforts to adapt financial and social infrastructure. The ratings transition provides a window for local firms like GCR to expand, potentially strengthening homegrown expertise.
For grants, the online tools represent a step toward digital efficiency in public services.
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