South Africa Edging Closer to Junk as Credit-Rating Reviews Loom
- Fiscal position compromised by weak economic growth, RMB says
- Investors are pricing in a downgrade by Fitch on Dec. 4
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South Africa looks set to inch closer to junk.
Credit default swaps show the nation’s credit rating may be due a downgrade, and economists agree. Twelve of 13 analysts surveyed by Bloomberg said Fitch Ratings Ltd. will this week cut its assessment to BBB-, the lowest investment grade. While Standard & Poor’s should keep its rating at one level above junk, some analysts are predicting the company will lower its outlook to negative. Both companies publish their reviews on Dec. 4.