S&P affirms South Africa’s BB+ rating, negative outlook

Date:

JOHANNESBURG – S&P Global Ratings on Friday affirmed South Africa’s “junk” grade foreign currency debt rating and retained a negative outlook, saying weak economic growth and political uncertainty continued to pose risks to the rating.

Thank you for reading this post, don't forget to subscribe!

S&P cut South Africa’s foreign currency debt to BB+, its highest speculative-grade rating, in April after respected finance minister Pravin Gordhan was sacked.

“The negative outlook on the foreign and local currency ratings reflects our view that political risks will remain elevated this year, which could undermine economic growth and fiscal outcomes more than we currently project,” S&P said.

The rating agency also affirmed South Africa’s local currency debt ratings at BBB-, the lowest investment-grade rating, with a negative outlook.

Rival Fitch also downgraded South Africa to sub-investment grade for both foreign and local currency debt in April, and affirmed the rating on Thursday.

Moody’s — whose Baa2 rating is two notches above “junk” — is reviewing South Africa for a possible downgrade.

South Africa’s Treasury said on Friday it was committed to improving business and consumer confidence.

“Improvement in policy design, finalisation of key policies and coordination remain critical for boosting confidence and economic growth,” the Treasury said in a statement.

It expects growth of 1.3 percent this year, up from 0.3 percent in 2016.

(Reporting by Olivia Kumwenda-Mtambo; Editing by Catherine Evans)

Share post:

Subscribe

Popular

More like this
Related

Access Holdings to pay N1.80 as final dividend to shareholder

March 28, 2024. Azonuchechi Chukwu. Access Holdings has revealed plans to...

Police gun down two notorious bandits in Benue

March 28, 2024. Azonuchechi Chukwu. Men of Operation Zenda, a Joint...

Army declares eight wanted in connection with the k!lling of its officers in Okuama

March 28, 2024. Azonuchechi Chukwu. The Nigerian Army has declared eight...

Naira Appreciates Against Dollar at the NAFEM Window

March 28, 2024. Azonuchechi Chukwu. The Naira’s euphoric appreciation against the...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading