South Africa is already ranked at sub-investment grade by both S&P and Fitch Ratings - while Moody's has left it teetering on the edge of junk status.
Credit rating agency, Standard and Poor’s, has downgraded its outlook for South Africa’s credit rating to negative.South Africa is already ranked at sub-investment grade by both S&P and Fitch Ratings – while Moody’s has left it teetering on the edge of junk status. Earlier this week, Reserve Bank Governor Lesetja Kganyago says the bank considers rating agencies’ reviews because of the risk they have on the premium at which the country can borrow money on local and foreign markets. His comments come after the bank’s Monetary Policy Committee’s decision to leave the repo rate unchanged at six-point-five percent and interest rates also unchanged at ten percent.
“If the rating agencies have a concern, those will begin to factor into the country risk premium. And the manner in which we end up having to decide what the neutral rate is for South Africa is that we take what the foreign neutral is and we adjust it for SA’s country risk. And clearly, if the SA country risk rises then what you have is that that neutral risk is then deemed to be higher.”
Public Sector Wage Bill has got nothing to do with South African fiscal deficit anymore than the incompetence in the Management of Fuel and Fleet. A single SOE can only save 15 million per annum on addressing PSWB compared to 250 million on addressing F&F... StopLabourAbuse
How low can we go!?
While Moody rating agency is fined for false rating. These agencies are controlled by corrupt big business.
One of these years will our politicians be fighting for a poor SA. We will become just like any other poor African country whereby the fight for governance will be the distruction of our economy.Lets come together and build pls.
Wht does ths mean 4 a lay person like me who has no knowledge of economic mattrs.Ani1 2 explain t in simple terms...nd measures tht need 2 b taken 2 address ths debt trap we find ourselves in...Thnx...
Zolo lokhu Moody's got fined ngalento yabo
Who owns these credit rating agencies?
Who care
New Dawn. MYANC
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