S&P has seen little progress on promised reforms in SA
Coming back from a downgrade to junk status is not impossible — but it is very difficult, the rating agency says, as its next review of SA approaches
Ratings agency S&P says that in order to affirm SA’s sovereign credit rating come December 2, it needs to see more progress on the economic reforms to which the government committed in June. Its decision to affirm the country’s credit rating in June at BBB-, the lowest investment-grade level, was supported by the impetus from government to implement reforms in order to stimulate growth, Gardner Rusike, associate director for global ratings, said on Thursday. “Since then we have seen little progress on the things government said they would like to do. For us to continue affirming the ratings it is important that we see government doing what they should be doing on the economic reforms, which would give us comfort that the risks can change,” Rusike said. S&P would like to see government issue a progress report to indicate how the economic growth outlook had improved in the medium term and business confidence had increased, Rusike said. Slow economic growth not only hurt SA’s wealth l...
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