Cape Town - Political analyst Daniel Silke believes South Africa is highly likely to face a credit downgrade to junk status this year, although such a move is not yet imminent.
In a studio interview with News24Live, Silke pointed out that a downgrade by Moody's will take South Africa formally to one notch above junk and not to junk status itself. "But it's a sign to the other rating agencies - to Standard and Poor's and to Fitch - who themselves might downgrade us and they of course are simply one notch above junk, so if they downgrade us, we are effectively junk.
"This could occur during the course of the year, mid-year, latter part of the year. I don't think it's absolutely imminent and I think the rating agencies themselves might be looking for some degree of political direction to see where the country is going, but it's very possible that by the end of this year we may well see a ratings agency downgrade and that would push us to junk level."