Credit Rating
A credit rating is an assessment of the creditworthiness of a borrower, whether a sovereign State, corporate entity or financial instrument, expressed through a standardised grading scale. It indicates the likelihood that a borrower will meet its debt obligations in full and on time, and informs investors of the relative risk attached to lending money or purchasing bonds. Ratings are assigned by specialised agencies that analyse financial statements, economic indicators, governance quality and repayment history. Global agencies such as Moody's, S&P Global Ratings and Fitch dominate the market, while regional bodies, including the Africa Credit Rating Agency, have emerged to provide assessments tailored to local market conditions. A higher rating typically allows a borrower to access capital markets at a lower cost, while a downgrade raises borrowing costs and can restrict market access. Sovereign credit ratings are particularly significant for African governments, which rely heavily on international capital markets to fund infrastructure and development programmes. Ratings influence investor confidence, currency stability and the terms on which governments and companies can issue debt. Criticism of the dominant global agencies has prompted calls, including from the African Union, for greater representation of African-based rating institutions. The practice of credit rating became formalised in the early twentieth century and has since expanded into a central pillar of global capital markets.
Credit Rating Updates
Daily Podcast – October 19, 2026
By: Thabi Shomolekae 19th October 2026 Making headlines: Hill-Lewis launches billboard with Ramaphosa's ‘admission’ that DA municipalities work better; SA targets 1.3m unregistered... →
South Africa set for brighter fiscal outlook in Wednesday's mid-term budget 
By: Reuters 19th October 2026 South Africa's finance minister is expected to present an improved fiscal outlook in his mid-term budget on Wednesday, with a revenue windfall... →
South Africa on path to investment-grade rating, Investec says
By: Bloomberg 19th October 2026 South Africa stands a good chance of regaining its investment-grade credit rating within two years and next week’s mid-term budget could take... →
Daily Podcast – October 14, 2026
By: Halima Frost 14th October 2026 Making headlines: DA eyes majority win in election; DBE applauds ‘successful’ start to 2026 matric exams; And, Moody’s says South Africa is on... →
Moody’s says South Africa is on right track for rating upgrade
By: Bloomberg 14th October 2026 South Africa is heading in the right direction for its first credit-rating upgrade by Moody’s Ratings since 2009, provided the country’s fiscal... →
Daily Podcast – October 07, 2026
By: Thabi Shomolekae 7th October 2026 Making headlines: South Africa to establish new Commission to oversee State firms; Mashatile urges National Dialogue committee to resolve key... →
African Union to launch continent's first credit rating agency
By: Reuters 7th October 2026 The African Union will launch the continent's first credit rating agency on Wednesday, seeking to provide an alternative to the "big three" global... →
Africa’s new credit agency: why it’s needed
5th October 2026 The formal launch of the Africa Credit Rating Agency (AfCRA) has required considerable institutional commitment. It brings to fruition an effort... →
African banks bet on debt guarantees to lure private capital to infrastructure projects
By: Reuters 23rd July 2026 With aid budgets shrinking and development finance under pressure, African governments and development banks are increasingly turning to debt... →
City of Johannesburg welcomes Moody's ratings confirmation, positive outlook
By: Sabrina Jardim 6th July 2026 The City of Johannesburg (CoJ) has welcomed the decision by Moody's Ratings to affirm the city's long-term issuer rating at Ba3, while revising the... →
