Currently Moody’s is reviewing the country for a further upgrade, which could see South Africa’s foreign currency rating move from the current Baa2 (lower investment grade) to Baa1 (higher investment grade). Towards the end of October 2004 Fitch revised their outlook on South Africa’s BBB rating from stable to positive.
Inflows into South Africa’s bond and equity markets, which were largely elusive in 2002/2003, witnessed a significant turnaround in 2004. Faster economic growth combined with a low inflation environment and interest rates at multi-decade lows has seen non-residents return to the equity market. For 2004 to date, the equity market has enjoyed inflows to the value of R25,9 billion.