Cyril Ramaphosa under pressure as S&P flags weak growth as ratings curb
Agency expects the government to continue avoiding contentious issues such as widespread staff retrenchments at SOEs and tackling labour unions
SA is unlikely to regain investment grade status from S&P Global Ratings if there is no surge in economic growth, placing pressure on newly-elected President Cyril Ramaphosa to deliver on reforms. On Friday night, S&P kept the country’s long-term foreign-currency rating at BB, while the long-term local-currency rating was held at BB+, both below investment grade. It maintained a stable outlook on expectations that the government will focus on reforms to revive the economy. “The stable outlook reflects our view that, with the elections now over, the SA government will pursue some reforms and attempt to improve economic growth and try and contain fiscal deficits,” S&P said. PODCAST: Splitting the national and provincial vote SUBSCRIBE: iono.fm | Pocket Casts | Player.fm | Apple Podcasts However, it said it could only raise the ratings “if economic growth and fiscal outcomes strengthen in a significant and sustained manner beyond our current projections”.The pronouncement came a day b...
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