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Credit rating downgrade very likely - economist

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Cape Town - A quick glance at the factors that influence a country’s credit rating suggests that South Africa could indeed be in store for a sub-investment grade rating, says economist Arthur Kamp of Sanlam Investment Management.

In a company note issued on Friday, Kamp said South Africa’s GDP per capita level is declining, potential growth is low, the current account deficit is relatively large, the government's main budget deficit remains wide, policy uncertainty has escalated over the past year and the economy does not count among the most developed economies.

Looking at these factors, South Africa is, indeed, at risk of being assigned a sub-investment grade rating, Kamp said. 

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