(a) Total amount spent by Government on rating agencies fees
South Africa has solicited the credit rating services of Moody’s Investors Services (Moody’s), S&P Global Ratings (S&P), Fitch Ratings (Fitch) and the Japanese’ Ratings and Investment Information, Inc. (R&I). In terms of the contractual agreements, the government has to pay fees to the rating agencies for the services rendered.
Since April 2008 to May 2017, a total amount of R 81 451 873.00 has been paid to the rating agencies. The table below illustrates the total spent in rands made to all the four solicited credit rating agencies. S&P is the highest paid rating agency followed by Moody’s.
(b) The detailed breakdown of such expenditure per rating agency:
(i) S&P:
S&P’s annual rating fees are based on:
(ii) Moody’s:
Moody’s annual and quarterly rating fees are based on:
(iii) Fitch
Fitch’s annual rating fees are based on:
(iv) R&I
R&I’s annual rating fee is based on: