What If SA is Downgraded? - Six Ways it Could Impact Your Wallet
02 September 2016
Credit rating agencies assign credit ratings to borrowers such as sovereign nations, companies and banks. The credit rating reflects their assessment of creditworthiness – the probability that a borrower will be able to honour its financial obligations on the dates agreed. In the case of sovereign nations, it takes into account both quantitative factors, such as fiscal sustainability, and qualitative factors, such as perceived political risks and the policy environment.