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Govt: SA won't be downgraded

Aug 08 2011 21:06
Sapa and Reuters
Johannesburg - Treasury sees no change to the country's credit rating after the US downgrade by Standard and Poor, director general Lungisa Fuzile said on Monday.

"We interact with (ratings agencies) on a regular basis ... We don't foresee any change in the rating of South Africa in the foresseable future," Fuzile said on private station Talk Radio 702

Last Friday ratings agency Standard & Poor's docked the US from a sterling AAA to a AA+ rating, largely because of the failure of bitterly divided US leaders to reach a consensus on containing the country's spiraling debt.

In January ratings agency Fitch raised its outlook for South Africa from "negative" to "stable," saying the country's economy had weathered the global recession well.

"All rating agencies rate South Africa at an investment grade. Standard and Poor's in particular, affirmed South Africa's sovereign rating and even revised the rating outlook from negative to stable."

The institutions said they were confident that the 3.4% growth forecast and fiscal projections outlined during the national budget would be met.

But anaysts believe that the problems in developed economies would eventually affect the local economy which is already showing signs of slowing.

"We are not in nearly such a bad situation but if the world economy fell into recession we would also shrink," Nedbank economist Nicky Weimar told local media.

economy  |  us debt default  |  credit rating



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