S&P cuts South Africa's credit rating to 'junk'


- stockdailydish.com | 4 months ago

Credit rating agency Standard and Poor‘s downgraded South Africa‘s rating to junk status on Monday, as the country‘s currency continued to slide following a controversial cabinet shuffle.

“The executive changes initiated by President Zuma have put at risk fiscal and growth outcomes,” S&P said in a statement. It said the rating cut to below investment grade reflected “heightened political and institutional uncertainties” after President Jacob Zuma‘s shock purge of critical ministers on Friday, including Pravin Gordhan, a respected former finance minister.

The rand has fallen three percent against the US dollar since the Friday night shake-up, and fell further after the S&P downgrade.

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