This brings us to the moot point of who pays for the credit ratings. There are two conventional models. These are: “investor-pay” model, where the investor or banker commissions the credit rating and “issuer-pay” model, where the issuer of the security or borrower pays for the rating.
The rewards for macroeconomic discipline, however, build up over time and it is important to recognise where we are now beginning to see the real benefits come through. On the fiscal side, the National Treasury’s commitment to maintaining budgetary control and strengthening the public finances is now providing the base for significantly increased expenditure on key public services without in anyway jeopardising fiscal discipline.