Treasury welcomes Standard & Poor’s credit rating

Treasury has welcomed the decision by Standard & Poors (S&P) Globalnot to downgrade the country further.

The agency has kept its overall rating at BB+ with a negative outlook. The currency rating is BBB- with a negative outlook.
Treasury says it agrees with S&P Global that the pace of economic growth is slow.

Fitchalso kept its rating unchanged on Thursday.
S&P Global and Fitch downgraded South Africa to junk status earlier this year after President Jacob Zumafired finance minister Pravin Gordhan and reshuffled his Cabinet.

Following the announcement by Fitch on Thursday, the Treasury reacted favourably, saying it was relieved that South Africa had not been downgraded further.
It said there had been a concerted effort by the government to stop the country’s rating from sliding.

The rand also fell substantially after the Cabinet reshuffle, but has recovered since.
It’s been trading around R12.80 to the dollar on Friday, with economists saying a number of international factors are favouring the local currency.

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