Posts tagged with 'downgrade'

 

S&P Global, which downgraded SA to junk status, warns ANC government that it will not be easy to restore land

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The ratings agency S&P Global, which has legitimately downgraded the country to junk status, since 2017, has warned the ANC regime, saying the path of recovery is not reachable with the clap of fingers.

The agency also points out that the possibility of another downgrade in two weeks is not ruled out because of the dire position in which South Africa finds itself.

The Managing Director of S&P Global Sub-Saharan Africa, Konrad Reuss, was a guest speaker at the Consumer Goods Council Conference in Johannesburg, which was held at the same time as Ramaphosa’s conference where billions of Rand’s promises were made, the bulk of which were made usually does not become reality.

Reuss emphasized that the agency could further downgrade the country in November’s assessment, which would further hamper investors and investment.

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Pull the generator closer and get those candles ready, Eskom #rollingblackouts will be with us shortly

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Eskom expressed its disappointment over the decision of the rating agency Moody’s that further downgraded the bankrupt entity of the state.

The Moody’s Investment Service downgraded Eskom from a B2 to a B3, which means the entity has no confidence in consumers or the rating agency.

With the downgrade, Eskom is brought into line with the poor performance of the ANC’s financial standing, and the distrust it creates at international and national level.

So the possibility exists that with the crisis management system, Eskom can once again start applying the load shedding system to alleviate its financial position, but the country will perish because of the impact it will have on the general financial position.

Late yesterday afternoon, Eskom acknowledged that it could reintroduce short notice “because the system is under pressure”, which is believed to be financial pressure.

 

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SA has a national debt of R3 trillion rand and tax deficit of R53 million

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Following the disappointing mid-term budget speech by Tito Mboweni, the Rand reached its lowest level in weeks. Eskom’s rescue plan has nowhere really figured in either Pravin Gordan’s submission or Mboweni’s budget reason.

The government’s financial situation is rapidly deteriorating with the national debt of R3 trillion and a tax deficit of R53 billion.

Moody’s is therefore expected to downgrade the country to negative from where it currently stands at stable.

However, there are fears that Moody’s will downgrade the country directly to junk status which will affect Government bonds as the Citigroup’s World Government Bond Index contains only investment-grade securities.

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SA’s fiscal position – Great possibility that economy will be downgraded to junk status

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Tito Mboweni is expected to paint a gloomy picture of the country’s fiscal position later this month.

The agency Moody’s has had a fairly stable rating so far, but economists warn that the view may change to negative.

Moody’s has already made “negative” comments at its quarterly conference last week. The chance that SA will be finally downgraded to junk status is a possibility, and this is due to the poor growth and continuous cash injection into the country’s bankrupt state intimacies such as Evkom, SAA, Denel and SABC.

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Fitch Grade has just downgraded SA’s debt to negative and it seems Standard & Poor are short on their heels

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South Africa’s economists are probably learning a hard economic lesson. Once a rating company questions a country’s creditworthiness and there is a downgrade, it’s difficult to reverse the rating.

Fitch Grade has just downgraded SA’s debt to negative and it seems Standard & Poor are short on their heels.

According to economists, there are no more buffers or mechanisms to deal with this crises. A budget deficit, increased debt burden and policy uncertainty lead to a mistrust in the country’s economy.

Currently, SA is experiencing its biggest budget deficit in 10 years, and also a power supplier, Eskom, which consumes money. Moody’s is currently the only rating agency that gives a positive rating to SA, if they also downgrade the economy, the consequences can be catastrophic with a massive outflow of capital from the country.

-Vryburger
This report does not necessarily reflects the opinion of SA
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