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BRIEF-S&P lowers South Africa sovereign credit rating to BB+ from BBB-
April 3, 2017 / 3:54 PM / 4 months ago

BRIEF-S&P lowers South Africa sovereign credit rating to BB+ from BBB-

2 Min Read

April 3 (Reuters) - S&P Global Ratings:

* S&P lowers South Africa sovereign credit rating to BB+ from BBB-

* South Africa long-term foreign currency rating cut to 'BB+' on political and institutional uncertainty; outlook negative

* S&P on South Africa says "In our opinion, the executive changes initiated by President Zuma have put at risk fiscal and growth outcomes."

* Negative outlook reflects view that political risks will remain elevated this year, and that policy shifts are likely

* In addition, we lowered the long-term south africa national scale rating to 'zaAA-' from 'zaAAA'

* Believe sustained real exports growth likely to be slow over 2017-2020 because of persistent supply-side constraints to production

* Estimate that the change in general government debt will average 4.2 percent of GDP over 2017-2020

* Higher risks of budgetary slippage will also put upward pressure on South Africa's cost of capital, further dampening already-modest growth

* Reassessed S. Africa's contingent liabilities, reflects increased risk that nonfinancial public enterprises will need further extraordinary government support Source text (bit.ly/2nwCIRW)

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