The loose consensus among economic commentators is that SA will not lose its investment grade credit rating with S&P Global Ratings when the announcement is made on Friday night, but that it really is too close to call. The case for a downgrade was strengthened last week when Fitch Ratings changed the outlook on SA’s BBB-foreign rating from stable to negative. With S&P having already changed the outlook on SA’s BBB-rating to negative, it has no more slack to cut SA before moving the foreign rating into sub-investment (junk) territory. But many leading economists are hopeful that S&P will stay its hand given several positive developments that have occurred since its mid-year review. These include the withdrawal of charges against finance minister Pravin Gordhan, a solid medium-term budget, an amicable three-year wage agreement in the platinum sector; broad agreement on a package of labour stability reforms, and the release of a new energy mix plan which significantly pushes back gove...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.