Credit-ratings agencies Moody’s Investors Service and S&P Global Ratings are releasing the outcomes of their scheduled reviews of SA this week, which may move the market and affect the rand. Economists say SA’s debt will inevitably be downgraded to subinvestment grade, or junk status, after what they say has been a disastrous medium-term budget policy statement, which had not mentioned fiscal consolidation but projected a rise in the debt-to-GDP ratio. Finance Minister Malusi Gigaba’s statement minibudget got a lukewarm reception from the ratings agencies, as it raised questions about the government’s commitment to narrowing the budget deficit. Moody’s and S&P are set to release their verdicts at the market close on Friday. While Moody’s is the only agency that still has SA a notch above junk status, both have the country on a negative outlook. NKC economist Elize Kruger said: "Given that S&P already assigned a negative outlook to both the local and foreign currency ratings in April...
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