Rating agency

THERE’S a new kid on the block in the world of rating agencies dominated by the big three (Standard & Poor’s, Moody’s and Fitch Ratings) who control 95% of the market; it is the first from the African continent and it has boldly given South Africa, a country now inured to junk status ratings, a positive stable outlook for the short term.

According to Sovereign Africa Ratings (SAR) chief executive, Dr Sifiso Falala, one got a sense that the rating agencies sought to merely assimilate Africa into a Western model of their making.

There are gaps that an organisation like SAR can plug. We’re not a political organisation, we are an economic rating agency, Falala said. “We have a responsibility to provide an accurate rating.” | IOL