Labour deal on the cards to avert junk
Events of the coming week will be crucial as labour, business and government hold last-minute talks to secure labour stability, including a national minimum wage
SA could drastically decrease the risk of a sovereign debt downgrade to junk status if last-minute behind-the-scenes talks between labour, business and government on a package of labour stability measures come to fruition. A key meeting, chaired by Deputy President Cyril Ramaphosa, is scheduled on Sunday during which sources close to the talks hope agreements can be signed off on measures such as strike balloting and a national minimum wage. This comes as two of the three major ratings agencies are poised to update their ratings, with announcements due from Moody’s on November 27 and from S&P Global Ratings on December 2. S&P’s rating causes the greatest concern because it has SA’s rating at just one notch above subinvestment status and on review for a downgrade. The Moody’s rating is one notch higher than S&P’s. Fitch, which has no fixed date for an update, also has the rating at just one notch above investment grade, but on a stable outlook — which it could change to negative.The ...
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