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WATCH: Rand to take cues from junk status
Standard & Poor's and Moody's was scheduled to release their latest verdicts on South Africa's creditworthiness. Of course, it's a combination of slow economic growth and poor fiscal metrics that's has triggered a rise in the debt ceiling as well as slippages in terms of borrowing and tax revenue - heightening the risk metrics. So, has South Africa's left the ratings agencies with no choice but to lower the country further into junk status this evening OR does the ANC's elective conference in December buy us some time? Already struggling under the weight of political and fiscal troubles, the local unit is set to face its next test after the status review. According to Nedbank, a double downgrade whammy could see the currency plunge more than 18% to trade around 17 rand to the dollar by year end. Lesiba Mothata, Executive Chief Economist at Alexander Forbes Investments discusses the state of SA Inc, after Fitch gave its view of the country’s credit rating, and as Moody’s and S&P was...
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