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SA downgrade won't be train smash - economist

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Cape Town - More downgrades of South Africa by ratings agencies will certainly not be a train smash, according to David Knee, head of fixed interest at Prudential Asset Management.

He immediately added, however, that more downgrades of SA, especially to junk status, would naturally raise significant concerns, because past examples have shown it could take a long time to turn such a situation around.

Knee spoke on the risk of ratings downgrades and the investment implications thereof at an event hosted by the Actuarial Society of SA at Old Mutual in Cape Town.

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