Should SA avoid having its credit rating cut to junk in the next two weeks, it could just be staving off the inevitable. More than half of 12 economists surveyed by Bloomberg said S&P Global Ratings would strip the nation of its investment-level rating. The median probability of SA retaining its investment-grade assessment in December was 45%, falling to only 20% in 2017, the survey showed. The country faces a cut to junk on its foreign-currency credit rating as output is forecast to expand at the slowest pace this year since a 2009 recession, delaying the government’s plans to narrow the shortfall on the budget and rein in debt. While the economic growth outlook has improved marginally and a similar Bloomberg poll six months ago showed 12 of 13 economists said the nation’s credit rating would be cut to junk by the end of the year, political turmoil, including now-dropped fraud charges against Finance Minister Pravin Gordhan, has overshadowed some the government’s efforts to boost i...
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