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S&P Downgrades South Africa as Rand Slides

CHART: BusinessTech.co.za

24 November 2017

BUSINESS TECH — S&P Global Ratings on Friday evening lowered its long-term foreign currency sovereign credit rating on the Republic of South Africa to ‘BB’ from ‘BB+’ and affirmed the ‘B’ short-term foreign currency sovereign credit rating.

The outlook is stable.

At the same time, the long-term local currency sovereign credit rating was lowered to ‘BB+’ from ‘BBB-‘ and the short-term local currency sovereign credit rating was lowered to ‘B’ from ‘A-3’.

The outlook is stable.

“We also lowered the long-term South Africa national scale rating to ‘zaAA+’ from ‘zaAAA’ and affirmed the short-term national scale rating at ‘zaA-1+’,” the ratings group said.

“The downgrade reflects our opinion of further deterioration of South Africa’s economic outlook and its public finances. In our view, economic decisions in recent years have largely focused on the distribution–rather than the growth of-national income. […]

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