A sovereign downgrade: will SA’s crown topple?
On Friday, 25 November Fitch Ratings announced that the outlook attached to its BBB- ratings of SA foreign and local currency sovereign debt has moved from stable to negative, and warned that continued political instability could lead to the downgrade of the sovereign to sub-investment grade. The company expects the political risks facing the country to remain high at least until the ANC’s leadership election in December 2017. Moody’s kept the sovereign rating unchanged at Baa2, two levels above subinvestment grade, with a negative outlook.