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Finance Minister Tito Mboweni says 'painful' credit rating downgrades will impact SA's borrowing costs

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Finance Minister Tito Mboweni.
Finance Minister Tito Mboweni.

Further downgrades of SA's sovereign credit rating by two rating agencies will have "immediate implications for our borrowing costs" and constrain the country's already-strained fiscal framework, according to Finance Minister Tito Mboweni.

On Saturday morning, Mboweni was reacting to Fitch and Moody's further lowering their assessments of SA's sovereign debt deeper into sub -investment grade, or 'junk'. 

On Friday evening, Fitch announced that it had lowered the rating of SA's long-term foreign currency debt to 'BB-' from 'BB', with a negative outlook. 'BB-' is the third rung of junk grade, according to Fitch's rating hierarchy.

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