Rand Faces Test on Looming Risk of South Africa Junk Rating
- Nine of 16 economists in survey see S&P lowering local debt
- Rand may slide to 17 a dollar on a double downgrade: Nedbank
South Africa's Kganyago Sees Inflation Risk to the Upside
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Already bruised by political and budget troubles, the rand faces its next crucial test in less than 24 hours: reviews by two ratings companies.
S&P Global Ratings and Moody’s Investors Service are reviewing the country’s credit ratings Friday, and nine of 16 economists surveyed by Bloomberg expect the former to deliver a cut to the nation’s domestic debt. Four see a similar action by Moody’s. A demotion to sub-investment grade by both agencies will result in South Africa’s exclusion from Citigroup Inc.’s World Government Bond Index, hurting demand for the nation’s currency and bonds.