Newsdeck

Newsdeck

Fitch cuts S.Africa’s credit rating to ‘junk’

Ratings agency Fitch said Friday it had cut South Africa's credit rating to junk status, citing the recent political instability prompted by a controversial cabinet reshuffle.

The agency downgraded the country’s sovereign debt rating from ‘BBB-‘ to ‘BB+’ but kept the outlook stable.

It said the downgrade reflected the view that “recent political events, including a major cabinet reshuffle, will weaken standards of governance and public finances.”

Already earlier this week, another rating agency, Standard & Poor’s, also reduced South Africa’s rating to sub-investment, as the country’s currency, the rand, slid after President Jacob Zuma ousted his finance minister, Pravin Gordhan. 

Fitch said that, in its view, the cabinet reshuffle, which also included deputy finance minister Mcebisi Jonas, “is likely to result in a change in the direction of economic policy.” DM

Gallery

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Become a Maverick Insider

This could have been a paywall

On another site this would have been a paywall. Maverick Insider keeps our content free for all.

Become an Insider

Every seed of hope will one day sprout.

South African citizens throughout the country are standing up for our human rights. Stay informed, connected and inspired by our weekly FREE Maverick Citizen newsletter.