RATINGS ANNOUNCEMENT
South Africa may be hours from a junk rating that will last years
SA might be just hours away from losing its investment-grade at S&P Global Ratings - a relegation that could take years to undo. With a credit assessment due on Friday, the country’s foreign-currency debt is at risk of being rated junk by S&P for the first time in more than 16 years. Only six of 20 countries reduced below investment grade by S&P over the past three decades have regained it, and that took from 13 months to more than 11 years, data compiled by Bloomberg show. Seven of 12 economists surveyed by Bloomberg last month said the nation’s foreign-currency rating will be downgraded to junk on Friday, while three foresee it happening in June. Political turmoil in Africa’s most-industrialised economy, including now-dropped fraud charges against Finance Minister Pravin Gordhan, has overshadowed efforts to boost investor and business confidence. The slowest gross domestic product growth this year since a 2009 recession will complicate Gordhan’s pledge to narrow the budget deficit...
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