November 9, 2017 / 4:02 PM / in a year

S.Africa cenbank: downgrade could stop non-resident bond buying

JOHANNESBURG, Nov 9 (Reuters) - If South Africa’s credit rating is downgraded again there is a risk of a “sudden stop” in non-residents’ appetite for local bonds, the central bank said on Thursday.

“Domestic bonds may still remain attractive as they are classified as high-yielding securities,” the bank said in its latest financial stability review.

“However, from the financial stability perspective, there is a risk of a sudden stop in non-residents’ appetite for local bonds if South Africa were to be downgraded.” (Reporting by Olivia Kumwenda-Mtambo; Writing by Joe Brock; Editing by Ed Cropley)

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