Reaction to election outcome will be watched by ratings agency, says Old Mutual Investment Group experts
04 August 2016
Yesterday’s local elections and their much anticipated results are generally regarded as the most important since South Africa’s first democratic elections in 1994, considering the real risk of the ANC losing significant support and causing uncertainty on the outcome of the next general election. With regard to the economy, the immediate outcome of the results are unlikely to prove a direct decisive factor in the potential downgrade decision by ratings agencies later this year. However, the ruling party’s reaction to the outcome and the policies it might adopt as a result, could influence the next rating reviews before the end of the year.