Cecil Kilpin | May 2017 Newsletter

By |2022-01-21T11:30:29+02:00April 26th, 2017|Business, Finance + Economics, Goverment, Newsletter|

What Junk Status Means for South Africa For the first time in 17 years, South Africa's credit rating has been downgraded to "non-investment grade" or "junk" status by the ratings agencies S&P Global and Fitch. The third major rating agency, Moody’s, is yet to announce their revised credit rating for South Africa. This financial downgrade will make it more expensive for South Africa to borrow money as lending to this country is now considered to be very risky.  A bit like individuals with a poor credit rating who resort to borrowing from ‘loan sharks’, the SA government will now have to borrow from investors who are willing to invest in higher risk debt - this is expensive.Putting this into perspective, for the period April 2015 [...]