South Africa may end the week with a further downgrade of its sovereign credit rating in what would be another significant event for the economy. On Friday S&P Global Ratings will update its review of the country's growth prospects and ability to repay its debt. It may downgrade the local-currency rating after lowering the foreign-currency rating to junk in April following a surprise cabinet reshuffle that included sacking the finance minister. A Moody's report is also imminent after the agency said last month that it had placed the government rating on review for a downgrade in 30 to 90 days.As much as $1.5-billion (about R19-billion) in capital may drain from the bond market as pension funds mandated to invest only in investment-grade funds dump South African bonds, said Ricardo da Camara, investment analyst at Marble Rock Asset Management . South Africa may be booted off the key Citi World Government Bond Index should either S&P or Moody's downgrade the local currency to junk. "I...
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