Ratings agencies start talks on SA
International credit ratings agencies are in the country this month to review SA’s sovereign rating amid concerns that the country may be downgraded to junk
International credit ratings agencies began meetings with government and political leaders this week. On Thursday they spoke to politicians at the ANC headquarters, Luthuli House. SA’s credit rating, currently at investment grade, runs the risk of being downgraded to junk status because of weak economic growth, poorly performing state-owned enterprises putting a drag on the fiscus, and high state debt. Junk status increases the cost of borrowing and may lead to disinvestment. Moody’s Issuer Services will publish its ratings action first — on black Friday, November 25. S&P Global Ratings will follow on December 2. Fitch Ratings has not yet indicated when its report will be issued. Treasury director-general Lungisa Fuzile is expected to meet S&P at the weekend, having already sat for meetings with Fitch Ratings.
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