South Africa Loses Investment Grade (IG) status on anticipated unfavorable policy shifts

Changes in SA’s executive leadership have led to heightened political and institutional uncertainties Although Standard and Poor’s Global Ratings (S&P) was scheduled to release a ratings review on SA on 2 June 2017, recent changes to the country’s executive leadership have, in its view, brought policy continuity into question. This has resulted in the ratings agency deciding to downgrade SA’s long-term foreign currency rating from BBB- to BB+ (junk status)…