Risk of further downgrades for SA, says S&P Global

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Jopie Fourie

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Ratings agency S&P Global has issued a stark warning to SA, suggesting there is a risk of further downgrades for the country in two weeks’ time.

MD for S&P Global Sub-Saharan Africa Konrad Reuss, speaking at the Consumer Goods Council Summit in Johannesburg on Wednesday, said the ratings agency may further downgrade the country later in November.

“The next big announcement will be on November 22. There will certainly be a very controversial committee discussion because at this point we have a new medium-term budget policy statement (MTBPS) with a lot of bad news but with very little action or action plan.”

His comments come just after Moody’s Investors Service revised the country’s outlook to negative on November 1, citing a lack of action by the government to address increasing state-owned enterprises’ (SOEs) debt, high unemployment, and a deteriorating fiscal position.

Moody’s said on Friday that there is “rising concern that the government will not find the political capital to implement the range of measures it intends, and that its plans will be largely ineffective in lifting growth”.

Moody’s, the last ratings agency to keep SA from sub-investment grade, said “resistance to reforms from key stakeholders limits the government’s room to adopt and implement structural reforms”.
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www.businesslive.co.za

Risk of further downgrades for SA, says S&P Global

The ratings agency says the medium-term budget had ‘a lot of bad news but with very little action or action plan’
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NarrowBandFtw

NarrowBandFtw

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do it S&P! show those Moody's pussies how it is done ...

... unless this is you signalling to the ANC that you also want bribe money, then fahk you!
 
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