Standard & Poor’s investment rating saves South Africa – Young Africa

 After Moody’s in early May, it was the turn of Standard & amp; Poor’s (S & amp; P) to maintain the South African sovereign rating in the category “investment”, while maintaining a negative outlook due in particular to growth again revised downwards.

Dreaded, demotion of the signing of the South Africa in the category of speculative investments by the three major rating agencies is not yet come.

Moody’s in early May maintained its rating two levels above speculative categories to “Baa2 “. In contrast, other members of the BRICS group, such as Brazil (in September 2015 by S & amp; P) and Russia (January 2015 by S & amp; P)., Which they had been demoted

Friday, June 3, Standard & amp; Poor’s has maintained the sovereign rating of the Republic of South Africa. Its long-term rating is maintained at ‘BBB-’ (and ‘A-3′ for the short term) in foreign currency, and “BBB +” (and “A-2″) in local currency. The rating of long-term foreign currency country therefore remains a cut above the category of speculative investments, deemed more risky by investors.

Fitch Ratings has published this week its new assessment signing of South Africa, noted “BBB-” with a stable outlook by the US agency.

interest rates on South African bonds drop

The decision by Standard & amp; Poor’s immediately be felt on the appreciation of the South African bond market. The rate bonds maturing in 2026 fell to 9.09% this Monday, June 6, the lowest level for a month, according to Reuters .

against the negative outlook on the rating of South Africa is maintained by S & amp; P which had introduced in December as Fitch and Moody’s. One way to report that the option of degradation remains valid in case the economic policy measures taken by Pretoria not would boost the South African machine, the growth remains weak

S & amp. P resumed the GDP growth forecast for Arc-en-Ciel nation established by the IMF at 0.6% in 2016, against 1.6% previously. A figure considered low, especially as 2.7% were a time expected by the agency for 2015 and a modest 1.5% was finally reached.

The agency US expects a deficit of -3.2% of GDP in 2016, against 3.9% in 2015, a debt amounting to 51.9% of GDP this year, against 51% last year. The unemployment rate is expected to increase by 50 basis points to 25.9% in 2016, against 25.4% in 2015.

The outlook remains negative

the warning from the rating agency is accented by a tense political climate. For several months, the South African President Jacob Zuma is under fire from critics for both its economic management challenged by the opposition parties for the corruption scandals in which he is involved.

But among the good report, energy is a recurring challenge for the country: for S & amp; P, the national electricity company Eskom, which delivers 95% of electricity in South Africa has improved its programs maintenance and limits the power cuts on the network.

Pravin Gordhan, Minister of Finance of south Africa, the country “needs to focus on growing the economy and creating jobs.”

“We have to demonstrate our ability to raise growth above 0.6% or 0.7%, to guide us to the 2%”, added the general south African financier

. Benjamin Polle