Together with Moody’s and Fitch, these decisions must therefore be seen as friendly warnings, rather than as reprieves, about what South Africa is seen to be doing and implementing over the next few months. Although the S&P assessment also recognises the changes and improvements made so far in certain areas of policy, the reality is that the economy remains on the cusp of junk status. South Africa is still at only one notch above junk in both S&P and Fitch assessments. The country needs to break this mould sooner, rather than later, by implementing polices which put it on a much higher growth trajectory.

Source: NWU

“The good news from S&P’s latest decision on South Africa’s investment rating clinches the extra period now granted for us to get our house in order by all three the Credit rating agencies… But this time must be used wisely”, says North-West University’s school,of business and governance economist, Professor Raymond Parsons.

Although S&P lowered the local currency rating, it still remains above junk status. But the underlying strong and converging messages of the three rating agencies should still be taken very seriously by decision makers in both the public and private sectors. The three rating agencies now all reflect negative outlooks.