04/04/2017 18:18 SAST | Updated 04/04/2017 18:40 SAST

Moody's Holds Back on SA Credit Rating Decision

The agency says it won't announce on Friday as previously planned.

Siphiwe Sibeko / Reuters

Moody's said on Tuesday it will not issue a sovereign credit rating decision on South Africa this Friday, as previously planned, but will do so after a review that could take 30 to 90 days.

It had announced on Monday that it had placed South Africa on a review for a downgrade after a cabinet reshuffle that saw former finance minister Pravin Gordhan sacked.

Moody's currently has South Africa's sovereign at two notches above non-investment or junk grade at grade at Baa2.

A Moody's representative told Fin24: "To be clear, Moody's announced a rating action for the government of South Africa on Monday evening. The potential calendar date on Friday, April 7, will now not go ahead."

Moody's had put South Africa on standby for a potential ratings downgrade on Monday, which came after S&P downgraded the credit rating to junk status citing Gordhan's sacking as one of the reasons.