Ratings agency Standard & Poor’s (S&P) will announce on Friday whether it will downgrade South Africa’s credit rating.
And while many experts believe that a downgrade to junk status is unlikely, the repercussions of a decision to lower the country’s credit rating will be felt by all South Africans.
A downgrade of SA’s rating will likely affect the exchange rates and investor confidence, and it could also force the Reserve Bank to increase interest rates.
S&P currently has SA’s credit rating one notch above junk status.
Moody’s most recently decided to keep the country’s credit rating unchanged at two notches above junk status, with a negative outlook.
Fitch is yet to confirm a date for its next rating decision, but Finance Minister Pravin Gordhan said in a speech in Parliament on Thursday that the review was expected on June 8.
Anticipation of a possible credit downgrade saw the rand weaken to around 15 rand-82 against the US dollar during the week.
And while many experts believe that a downgrade to junk status is unlikely, the repercussions of a decision to lower the country’s credit rating will be felt by all South Africans.
A downgrade of SA’s rating will likely affect the exchange rates and investor confidence, and it could also force the Reserve Bank to increase interest rates.
S&P currently has SA’s credit rating one notch above junk status.
Moody’s most recently decided to keep the country’s credit rating unchanged at two notches above junk status, with a negative outlook.
Fitch is yet to confirm a date for its next rating decision, but Finance Minister Pravin Gordhan said in a speech in Parliament on Thursday that the review was expected on June 8.
Anticipation of a possible credit downgrade saw the rand weaken to around 15 rand-82 against the US dollar during the week.
