BUSINESS DAY TV: Have downgrades fundamentally altered SA’s growth path?
Razia Khan, chief Africa economist at Standard Chartered Bank, speaks to Business Day.
BUSINESS DAY TV: As SA waits to hear whether Moody’s will follow suit and downgrade the country. President Jacob Zuma is attending the World Economic Forum here in Durban, and he is hoping to reassure investors that everything is still on track and set for economic growth here in SA. Joining us to discuss this is Razia Khan — she is chief africa economist at Standard Chartered Bank. Razia, thanks very much for your time today. So we’ve had S&P and Fitch downgrade SA to subinvestment grade. Do you think all signs are pointing to Moody’s doing the same? RAZIA KHAN: I think, given the circumstances — Moody’s having been due to report on 7 April — delaying that decision given the Cabinet reshuffle and the new developments, expectations are certainly pointing to at least a one notch downgrade. The key for South African financial markets of course is, at what point does it risk losing its investment-grade rating on the local currency debt? From that perspective, the Moody’s decision is im...
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