for subscribers

FULL STATEMENT: S&P cuts SA to junk status, fears political risks

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

S&P has downgraded South Africa to junk status, noting that President Zuma has put at risk South Africa's fiscal and growth outcomes with his Cabinet changes.

Overview:

• In our opinion, the executive changes initiated by President Zuma have put at risk fiscal and growth outcomes.
• We assess that contingent liabilities to the state are rising.
• We are therefore lowering our long-term foreign currency sovereign credit rating on the Republic of South Africa to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB'.
• The negative outlook reflects our view that political risks will remain elevated this year, and that policy shifts are likely, which could undermine fiscal and economic growth outcomes more than we currently project.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.62
(-0.12)
ZAR/GBP
23.01
(-0.05)
ZAR/EUR
20.78
(-0.03)
ZAR/AUD
12.62
(-0.03)
ZAR/JPY
0.17
(-0.88)
Gold
2034.21
(+0.05)
Silver
28.28
(+0.09)
Platinum
961.50
(+0.38)
Brent Crude
44.55
(-1.53)
Palladium
2166.01
(+0.63)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 929 votes
It depends on how the funds are used.
74% - 6235 votes
No. We should have gotten the loan elsewhere.
15% - 1283 votes
Vote