S&P downgrades South Africa’s credit rating to “junk”

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Credit rating agency Standard and Poor’s (S&P) has downgraded South Africa’s rating to junk status, as the country’s currency continued to slide following a major cabinet reshuffle.

In an unscheduled review that prompted a sell-off in South African assets, S&P on Monday cited the impact of divisions in the government of President Jacob Zuma that led to leadership changes, including the departure of former Finance Minister Pravin Gordhan.

“This has increased the likelihood that economic growth and fiscal outcomes could suffer,” said S&P, which cut its rating by one notch to BB+ – its highest non-investment grade mark – and also assigned Africa’s most industrialised economy a negative outlook.

The rand, which has fallen three percent against the US dollar since the Friday night shake-up, tumbled further after the downgrade.

S&P also said that “political risks will remain elevated this year, and that policy shifts are likely, which could…

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5 thoughts on “S&P downgrades South Africa’s credit rating to “junk”

    1. Stuart, remember he is the only one who knows how to sign off on securities and the like; he has been through 3 RSA bankruptcies and a regime change; he has been around for 30 odd years; he was definitely put there by the cabal; he is a good minion; right now the cabal are trying to grab RSA and Zuma wants in on the securities action, but the cabal don’t like him; watch the rollercoaster ride about to unfold; it would not surprise me if they kiss and make up and Gordan returns; this same drama played out a year and a half ago;

      BUT, we have notified them their game is up; by 2019 the power will be back in the hands of the people; we are holding a peoples referendum to un-vote politics; and, restore the Republic; in peace

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