EDITORIAL: A black day for the country
‘In our opinion, the executive changes initiated by President Jacob Zuma have put at risk fiscal and growth outcomes’ — S&P Global Ratings
So the inevitable has happened: SA’s debt has been "junked". In some ways it’s less surprising that SA’s debt has been downgraded to junk status than the speed with which it happened. Perhaps also surprising is the fact that S&P Global Ratings maintained the negative outlook. That constitutes something of a kick in the guts to a downed man. The opening comment of S&P’s statement makes it crystal-clear why the decision was taken: "In our opinion, the executive changes initiated by President Jacob Zuma have put at risk fiscal and growth outcomes." The major blame for this decision has been squarely laid at the table of the president, but it was not just the decision to replace Pravin Gordhan and a host of other cabinet members. S&P was also plainly concerned not just by the change in personnel but by the risk that these changes could yield "policy shifts" that would undermine fiscal and economic growth. What these policy shifts might be, the agency did not specify, but it did raise co...
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