S&P warns of further downgrade over political uncertainty

The ratings agency downgraded the country to junk earlier this month, Fitch soon followed suite.

Picture: AFP.

JOHANNESBURG - Standard & Poor’s (S&P) Global is warning South Africa’s credit rating could be downgraded deeper into junk status if political uncertainty delays reforms needed to grow the economy.

The ratings agency downgraded the country to junk earlier this month, Fitch soon followed suite.

S&P Global is warning President Jacob Zuma's removal of Pravin Gordhan as finance minister has risked weakening potential growth outcomes - especially with uncertainty around whether strong decisions will be made on reform programs.

In December last year, S&P kept South Africa's credit rating unchanged at BBB-, just one level above junk status.

LISTEN: Here’s what it’ll take for SA to rise from junk status