A key factor in Moody’s assessment was their reduced nervousness about South Africa’s rising economic and fiscal risks, and higher levels of comfort with regard to efforts to restore the strength of key institutions.
It could still be a close call, though, depending on how the weather and consumption patterns play out. Incentives to save gas are therefore still as important as ever. High energy costs may, however, cause output to decline further, particularly in industry. The recent downbeat production plans and export expectations in industry are consistent with that view.