Rand steady against major currencies ahead of S&P decision
Many analysts believe a downgrade to so-called junk status is unlikely
The rand was little changed against major currencies at midday on Friday ahead of S&P Global Ratings’ credit assessment of SA, and the US nonfarm payrolls data. The US nonfarm payrolls report is due for release in the afternoon. S&P’s credit assessment is expected later in the evening. S&P has SA rated at just one notch above sub-investment grade, with a negative outlook. Many analysts believe a downgrade to so-called junk status is unlikely. S&P is the last of the leading agencies to report on SA’s debt for the year. Moody’s Investors Service left SA’s rating two notches above junk status and Fitch lowered its outlook to negative from stable, but maintained its investment grade rating. Rand Merchant Bank analyst John Cairns said S&P’s decision is mostly black or white and the rating agency had to decide whether to downgrade SA’s long-term foreign currency rating. He said there were a few grey scenarios. "They [could] downgrade the local rating, but not the foreign rating. There is ...
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