Posts tagged with 'downgrade'

 

S&P Global, which downgraded SA to junk status, warns ANC government that it will not be easy to restore land

Posted on Leave a comment

The ratings agency S&P Global, which has legitimately downgraded the country to junk status, since 2017, has warned the ANC regime, saying the path of recovery is not reachable with the clap of fingers.

The agency also points out that the possibility of another downgrade in two weeks is not ruled out because of the dire position in which South Africa finds itself.

The Managing Director of S&P Global Sub-Saharan Africa, Konrad Reuss, was a guest speaker at the Consumer Goods Council Conference in Johannesburg, which was held at the same time as Ramaphosa’s conference where billions of Rand’s promises were made, the bulk of which were made usually does not become reality.

Reuss emphasized that the agency could further downgrade the country in November’s assessment, which would further hamper investors and investment.

Continue reading…

Share with friends on Social Media (if share buttons do not show below, disable your ad blocker temporarily):

Enjoyed this post? Share it!

 
 

Pull the generator closer and get those candles ready, Eskom #rollingblackouts will be with us shortly

Posted on Leave a comment

Eskom expressed its disappointment over the decision of the rating agency Moody’s that further downgraded the bankrupt entity of the state.

The Moody’s Investment Service downgraded Eskom from a B2 to a B3, which means the entity has no confidence in consumers or the rating agency.

With the downgrade, Eskom is brought into line with the poor performance of the ANC’s financial standing, and the distrust it creates at international and national level.

So the possibility exists that with the crisis management system, Eskom can once again start applying the load shedding system to alleviate its financial position, but the country will perish because of the impact it will have on the general financial position.

Late yesterday afternoon, Eskom acknowledged that it could reintroduce short notice “because the system is under pressure”, which is believed to be financial pressure.

 
Continue reading…

Share with friends on Social Media (if share buttons do not show below, disable your ad blocker temporarily):

Enjoyed this post? Share it!

 
 

SA has a national debt of R3 trillion rand and tax deficit of R53 million

Posted on Leave a comment

Following the disappointing mid-term budget speech by Tito Mboweni, the Rand reached its lowest level in weeks. Eskom’s rescue plan has nowhere really figured in either Pravin Gordan’s submission or Mboweni’s budget reason.

The government’s financial situation is rapidly deteriorating with the national debt of R3 trillion and a tax deficit of R53 billion.

Moody’s is therefore expected to downgrade the country to negative from where it currently stands at stable.

However, there are fears that Moody’s will downgrade the country directly to junk status which will affect Government bonds as the Citigroup’s World Government Bond Index contains only investment-grade securities.

Continue reading…

Share with friends on Social Media (if share buttons do not show below, disable your ad blocker temporarily):

Enjoyed this post? Share it!

 
 

What could happen to the rand if Moody’s downgrades South Africa to sub-investment grade

Posted on Leave a comment

South Africa is preparing itself for the possibility that Moody’s may downgrade the country’s sovereign credit rating to sub-investment grade.

Moody’s is currently the only major ratings agency that has South Africa at investment grade – one notch above junk – with a stable outlook.

The country has been rated below investment grade since 2017 by ratings agencies Standard & Poor and Fitch.

Should the agency also downgrade South Africa to junk status, the country would no longer be eligible for inclusion in debt gauges such as Citigroup Inc’s World Government Bond Index (WGBI).

A downgrade may also have an effect on the rand, says chief trader at Standard Bank Warrick Butler, who was speaking in an interview with Reuters.

“A downgrade by Moody’s, which is considered highly unlikely by most commentators, will push the rand back into the R15-area and maybe even R16 depending on market positioning,” he said.

“While another stay and
Continue reading…

Share with friends on Social Media (if share buttons do not show below, disable your ad blocker temporarily):

Enjoyed this post? Share it!

 
 

SA’s fiscal position – Great possibility that economy will be downgraded to junk status

Posted on Leave a comment

Tito Mboweni is expected to paint a gloomy picture of the country’s fiscal position later this month.

The agency Moody’s has had a fairly stable rating so far, but economists warn that the view may change to negative.

Moody’s has already made “negative” comments at its quarterly conference last week. The chance that SA will be finally downgraded to junk status is a possibility, and this is due to the poor growth and continuous cash injection into the country’s bankrupt state intimacies such as Evkom, SAA, Denel and SABC.

Continue reading…

Share with friends on Social Media (if share buttons do not show below, disable your ad blocker temporarily):

Enjoyed this post? Share it!