S. Africa ruling party welcomes Moody's decision to keep S. Africa's rating at investment grade

CAPE TOWN, March 24 (Xinhua) -- The ruling African National Congress (ANC) on Saturday welcomed Moody's decision to keep S. Africa's rating at investment grade and change the country's outlook from negative to stable.

The ANC "notes and welcomes the decision by Moody's Investor Research Services to confirm South Africa's credit rating at investment grade and to change our outlook from negative to stable," the party said in a statement emailed to Xinhua.

Late Friday night, the rating agency confirmed the long-term issuer and senior unsecured bond ratings of the government of South Africa at Baa3, while changing the outlook to stable.

The stable outlook reflects a careful balance of risks, according to Moody's.

"The confirmation of South Africa's ratings reflects Moody's view that the previous weakening of South Africa's institutions will gradually reverse under a more transparent and predictable policy framework," the agency said.

The ANC said this decision affirms the work of the ANC-led government, together with its social partners, to implement measures aimed at recovery of the South African economy as well as sustaining the ongoing positive mood.

Whilst this decision offers a welcome reprieve, much more remains to be done to ensure that the economy remains on the correct trajectory, ANC national spokesperson Pule Mabe said.

He reaffirmed the ANC's commitment to supporting the government in the quest to strike the necessary balance between fiscal consolidation and investment in pressing social needs including the development of economic and social infrastructure, and consolidation of the social security net which the most vulnerable in the society rely on.

"The ANC commends the government, the private sector, labor and civil society for their collaborative approach to resolve the challenges that continue to constrain our economy," said Mabe.

The ANC calls on them to continue to work together to create conditions that will yield higher levels of economic growth required to create jobs and restore confidence through restoring the credibility and proper governance of state-owned companies, Mabe said. Enditem