RAMAPHOSA VICTORY
Fitch cautious on benefits of new ANC leadership
Significant political uncertainty and policy challenges would remain in SA after this week’s election of Cyril Ramaphosa as leader of the ANC, Fitch Ratings said on Wednesday. The global credit ratings agency downgraded SA to junk status in April 2016 on concern about weakened standards of governance and public finances, and a likely change of economic policy direction. It affirmed SA’s BB+ (junk) rating with a stable outlook in November 2017. Fitch was the second ratings agency after Moody’s Investors Service to highlight challenges Ramaphosa’s narrow margin of victory would bring in terms of implementing his desired economic reforms.
"The closeness of the result, and the likely challenges in agreeing and implementing changes to existing economic and fiscal settings, suggest that the policy paralysis prior to this week’s national conference may not be quickly resolved," Fitch said in its review of the ANC election outcome. While Ramaphosa’s victory would have far-reaching eff...
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