South Africa’s sovereign credit rating downgrades – implications for foreign investors

Two of the “Big Three” credit ratings agencies, S&P Global Ratings and Fitch Ratings, recently downgraded South Africa’s sovereign credit rating to sub-investment grade or “junk” status. The downgrades will impact South Africa negatively, by increasing the cost of borrowing in international capital markets, which will likely lead to a rise in interest rates, as well as higher inflation. These factors should contribute to slower economic growth in the short-to-medium term. Read More (PDF)