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Financial shares shine as SA escapes junk rating

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Johannesburg - Financial shares have been the star performers on the JSE on Monday after Standard & Poor’s followed  ratings agencies Moody's and Fitch in keeping South Africa’s credit rating intact.

Financial institutions are very dependent on solid sovereign credit ratings to access capital and a downgrade to junk status would have meant the institutions would have to pay more for capital.

The rand also responded positively on the news that the fears of a rating downgrade are now out of the way for at least six months before the next round of ratings reviews.

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