Research Update: South Africa Ratings Lowered On Weakening Economic And Fiscal Trajectory; Outlook Stable

Ratings: Foreign Currency: BB/Stable/B Local Currency: BB+/Stable/B For further details see ratings list. Weak GDP growth has led to further deterioration of South Africa's public finances beyond our previous expectations. We think the government will attempt to introduce offsetting measures in an effort to improve budgetary outcomes, but these may not be strong enough to stabilize public finances, and may weaken economic growth further in the near term. We are therefore lowering our long-term foreign currency rating to 'BB' and our long-term local currency rating to 'BB+'. The outlook on both the foreign currency and local currency ratings is stable. On Nov. 24, 2017, S&P Global Ratings lowered its long-term foreign currency sovereign credit rating on the Republic of South

...Weak GDP growth has led to further deterioration of South Africa's public finances + beyond our previous expectations. We think the government will attempt to introduce offsetting measures in an effort + to improve budgetary outcomes, but these may not be strong enough to stabilize public finances, and may weaken economic growth further in the near term. We are therefore lowering our long-term foreign currency rating to '##' and our + long-term local currency rating to '##+'. The outlook on both the foreign currency and local currency ratings is stable. +...

Research Update