Sovereign ratings downgrade a major setback for the economy in SA
5 December 2015
The sovereign ratings downgrade by Standard & Poor’s to BBB- (Negative Outlook) and Fitch Ratings to BBB- (Stable Outlook) is a major setback for South Africa.
South Africa is now hovering just above a non-investment grade, or “junk status”, international investment rating.
To a large degree, the sovereign ratings downgrade was a self-inflicted economic wound, with ratings agencies raising serious concerns about:
- low economic growth which is expected to be 1.4% in 2015;