South Africa Junk-Rating Risk Surges on Gordhan Fraud Charge

  • Probability of central bank tightening policy increased
  • Gordhan is scheduled to table mid-term budget on Oct. 26

S. Africa Credit Downgrade If Gordhan Removed: Nomura

Fraud charges against South African Finance Minister Pravin Gordhan have moved the country a step closer to a junk rating and put the possibility of an increase in borrowing costs back on the table, investors said.

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