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Junk status for SA? S&P is widely expected to downgrade South Africa''s credit rating to junk status. South Africa might be just hours away from losing its investment-grade rating at S&P Global Ratings, a relegation that could take years to undo, Reuters reported this week.
With a credit assessment due on Friday, the country''s foreign-currency debt is at risk of being rated junk by S&P for the first time in more than 16 years. Only six of 20 countries reduced below investment grade by S&P over the last three decades have regained it, and that took from 13 months to more than 11 years, data compiled by Bloomberg show.
A cut by S&P would move the company''s rating of the nation''s foreign-currency debt to the same level as Russia and Portugal. Investors already consider South Africa more risky than Russia, with the cost of insuring against non-payment of debt for five years using credit-default swaps 15 basis points higher than for that country.
NAMPA/REUTERS
Clik here to view.
Junk status for SA? S&P is widely expected to downgrade South Africa''s credit rating to junk status. South Africa might be just hours away from losing its investment-grade rating at S&P Global Ratings, a relegation that could take years to undo, Reuters reported this week.With a credit assessment due on Friday, the country''s foreign-currency debt is at risk of being rated junk by S&P for the first time in more than 16 years. Only six of 20 countries reduced below investment grade by S&P over the last three decades have regained it, and that took from 13 months to more than 11 years, data compiled by Bloomberg show.
A cut by S&P would move the company''s rating of the nation''s foreign-currency debt to the same level as Russia and Portugal. Investors already consider South Africa more risky than Russia, with the cost of insuring against non-payment of debt for five years using credit-default swaps 15 basis points higher than for that country.
NAMPA/REUTERS
