JUNK STATUS
Bank CEOs warn downgrade will hit job creation
CEOs at SA’s major banks, who earlier criticised the removal of finance minister Pravin Gordhan and his deputy, Mcebisi Jonas, said a sovereign credit-rating downgrade would have serious negative implications for economic growth and job creation. S&P Global Ratings cut SA’s foreign-currency credit rating to junk status on Monday night, saying "executive changes" by President Jacob Zuma risked fiscal and growth outcomes. "The latest round of changes to key portfolios in government without adequate explanation do not tell a story of stability and will not enhance confidence," Nedbank CEO, Mike Brown warned earlier. The reshuffle was disappointing, especially in the context of political and policy instability and low economic growth, Brown said. "Ratings agencies will be concerned, as we are, about the slow growth in the economy and the fact that the government is spending more money than it collects in taxes, leading to an increase in government borrowings," he said. The government ne...
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