South African Is Battling To Avert A Further Downgrade Of Its Credit Worthiness By Rating Agencies

The South African government is hoping to avert a further downgrade of its credit worthiness by rating agencies Fitch and Standards and Poor’s. This follows an earlier decision by another ratings agency Moody’s not to downgrade the country’s credit rating of B-AA-2, which is two levels above sub-investment grade. Fitch and Standards and Poor’s have rated South Africa just one notch above sub-investment grade and are expected to make their new ratings known in June.

But a Cabinet minister, Jeff Radebe is confident the country’s rating will not change. He told AFP that the decision by Moody’s not to downgrade South Africa’s rating showed the resilience of its economy in the face of the global economic situation.

South Africa’s economy has been hit by a slide in commodities prices and labour strife in the mining industry. The country’s economy has been experiencing a shrink in growth in the recent past and unemployment for the first quarter of 2016 has risen to 26.7 percent according to official data released on Monday.

via AFP