Credit ratings agencies
S&P Global, Fitch affirm SA’s ratings – govt acknowledges pressures
S&P said it affirmed South Africa's long-term foreign and local currency debt ratings at 'BB minus' and 'BB', respectively.
Development economist at the University of Stellenbosch Business School, Dr Nthabiseng Moleko, described the economy as reaching desperate times in 2020.
The Finance Minister said that his mid-term budget review – which painted a bleak picture of the country’s finances – had not gone down well with international ratings agency Fitch.
On Friday, Fitch announced that it was changing its outlook for South Africa from stable to negative and also kept South Africa's long-term foreign and local currency debt on BB plus.
Audit firm Grant Thornton was appointed by IL&FS’ new board to conduct the review following the government’s decision to take charge of the group after its defaults on debt obligations sparked fears of financial contagion.
The effects of load shedding are being felt by South Africans from all walks of life. Lullu Krugel, a senior economist for PriceWaterCoopers, breaks down the long-term effects of power cuts.
Finance Minister Tito Mboweni will deliver his budget speech this week which will likely give clarity around his rescue plan for Eskom and the possible absorption of some of its debt by government.
Ratings agency Fitch has affirmed South Africa's long-term foreign and local currency debt ratings at BB+ with a stable outlook. The ratings, therefore, remain below investment grade.
The world's top three rating agencies are American: Moody's, Fitch Ratings and S&P Global, formerly known as Standard & Poor's.
The rand turned weaker after Moody's report was released. It fell 0.22% against the dollar, more than erasing a 0.41% gain earlier in the session.
A common narrative for the start of the financial crisis suggests that credit agencies downplayed the riskiness of RMBS, drawing in lenders who did not appreciate their intrinsic risk.
Gigaba has told Reuters that government told ratings agencies that it will to step up efforts to dispose of assets in some state-owned entities to raise money for recapitalisation.
Treasury is expected to spell out tough decisions to plug a revenue gap and narrow the country's budget deficit.
Members of the Reserve Bank’s Monetary Policy Committee would have over the past two days weighed up a number of factors when deciding on the next interest rate decision.
The stalwarts congratulated Cyril Ramaphosa on his election as president of the ANC, saying he would not have an easy road, given the challenges the ANC faces.
The cost of large houses is also resulting in more people selling their houses to downgrade to smaller properties.
The rand dived to a 12-month low on Friday on reports President Jacob Zuma government was considering a range of budget cuts to pay for free tertiary education.
The downgrade concerns have been re-ignited after South Africa’s budget on Wednesday saw the Treasury hike its fiscal deficit forecast for this year to 4.3% of gross domestic product.
In June, Moody's cut its rating to one notch above junk status with a negative outlook.