Junk status: SA will know its fate in June

Official word from ratings agencies will be out in June as to whether or not South Africa has survived an almost certain downgrade to junk status. Both Standard & Poor's (S&P) and Moody's Investor Service (Moody's) visited SA in March to assess the situation, and both will issue a final verdict in June.

Gardner Rusike (pictured), S&P associate director, confirmed during a recent investor conference in Johannesburg that his agency would issue its latest report by June, also highlighting some of the agency's concerns for the country.

Rusike said:

"Recently we have seen focus shift to political issues in parliament and the Constitutional Court, and this could divert government's attention from issues around policy implementation."

Rusike was quoted in City Press as saying the government could boost growth through two "easy" ways: by moving on changing labour law to avoid a repeat of an extended wage strike, and by improving electricity supply.

  • Stay connected, up to date and in the loop on what is happening in the world of finance and keep track of newly published expert insights and interviews with CFOs and CEOs. Become an online member and receive our newsletter, follow us on Twitter, like us on Facebook and join us on LinkedIn.