GCR (an affiliate of Moody’s Investors Service), has maintained South Africa’s country risk score at between ‘7.00’ and ‘7.5’, according to its recently published country report (18 December 2023).
Maximum country risks are ranked at ’15’.
Topping the chart are Australia (’15’), United States (‘14.75’), United Kingdom (‘14.50’), Spain (‘10.50’) the Phillipines (‘8.50’) and Botswana (‘7.50’).
SA’s most recent rating is due to a rebound in GDP per capita to USD6980, from USD5620 in 2020.
The South African Reserve Bank (SARB) is projecting a GDP growth of 1.7% for 2022, followed by 1.9% for 2023
and 2024 respectively.
The latest report by the GCR singled out persistent inflation and an increasing unemployment rate, as main reasons for South Africa’s country risk score.
This is expected to lead to social unrest and industrial action.
Government debt levels, are another pressure point, expected to remain high, at a projection of 73.4% for 2023/2024.
Credit Ratings issued the GCR are opinions of the future credit risk of entities.
GCR has four key analytical units: Financial Institutions, Insurance, Corporate and Public Sector Debt and Structured Finance & Securitisation.
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