The rand slipped further on Thursday morning while government borrowing rates surged to their highest levels in about year, signalling market worries about the health of the country's finances. The upward revision in the the projected government budget deficit and associated deterioration in the government debt-to-GDP ratio has revived concerns that that SA could be stripped of its investment-grade status. Moody's Investors Service is the only major ratings agency that still rates the country's debt at investment grade. S&P Global Ratings and Fitch have already pulled the trigger in this regard. Presenting his first medium-term budget policy statement, new finance minister Tito Mboweni also trimmed the economic growth forecast for 2018 to 0.70%, from 1.5% that the Treasury predicted in February. “I think the market had fully priced in a good [budget statement] and 0% chance of Moody’s moving on the ratings watch. This has now changed and the market needs to move that sovereign ratin...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.