S&P cites growth as panel sees junk status
A downgrade by the ratings agency to junk would be the first in more than a decade, ranking SA on par with Russia and Brazil
SA’s weak economic growth was raised at the weekend meeting between the Treasury and representatives of ratings agency S&P Global. The Treasury has revised SA’s economic growth prospects downwards this year, from 0.9% to 0.5%. This is the slowest projection since the 2009 global recession. Among the three major international ratings agencies, S&P has SA on the lowest level of investment grade and is expected to announce its review results on December 2. A snap poll by Bloomberg last week showed that more than half of 12 economists surveyed said S&P will strip SA of its investment-level rating. A downgrade by S&P to junk would be the first in more than a decade, ranking SA on par with Russia and Brazil. "The issue is the question of growth and what is being done to grow the economy," Treasury director-general Lungisa Fuzile said after the meeting. He urged the ratings agencies to be patient with SA. "I said to these people, you’ve got to be patient with us. Speculation of what we wil...
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