ECONOMIC WEEK AHEAD: Main focus on S&P credit rating update
S&P Global Ratings provides an update on its scheduled review of SA
It’s a busy week, with the market on the lookout for S&P Global Ratings’ scheduled sovereign credit rating update on SA, expected on Friday. S&P, which slashed the country’s foreign currency denominated debt to sub-investment grade, or junk status, in April, is to provide an update on its scheduled review of the country. S&P might do a number of things including affirming its April decision to downgrade SA’s foreign currency debt to junk and placing the country on negative outlook. The Reserve Bank warned at its financial stability review earlier in May that SA was at high risk of further credit rating downgrades, which would affect the economy. The big issue is whether or not SA’s rand-denominated debt is downgraded — should this happen, it would trigger an investor exodus. Moody’s Investors Service, which placed SA on a 90-day review in April, is due to give an update on the country in the first week of June. The South African Revenue Service will on Tuesday release the country’s ...
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