LOCAL & INTERNATIONAL OUTLOOK
ECONOMY WATCH: Concerns over ratings and political risk
Talk of a possible sovereign credit rating downgrade has dominated economic conversation for most of this year and the discussion is likely to be heightened in the build-up to the end of the year. S&P Global Ratings will deliver its ratings action on December 2. Considered to be the harshest of the three major credit ratings agencies, which include Fitch Ratings and Moody’s Investor Service, S&P surprised the market when it affirmed its current rating of the sovereign (BBB-with a negative outlook) at the half-year review in June, rather than lowering the rating, which is pegged one notch above speculative or "junk" grade. Throughout this year business, labour and government have united to pull together a package of initiatives that would stabilise the labour environment, cut high youth unemployment, support small businesses and, over time, ignite economic growth.
Elize Kruger, economist at Kadd Capital, told IM: "I think the jury is still out, and the likelihood is probably 50...
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