S&P warns of downgrade if SA misses targets | Fin24
 
  • New Notes

    Long queues have formed in Harare after Zimbabwe released new bank notes and coins.

  • Open Book

    Former President Jacob Zuma says the public protector can access his tax records.

  • SAA Strike Proposal

    The flag carrier's acting CFO says a strike could destroy the struggling airline and all its jobs.

Loading...

S&P warns of downgrade if SA misses targets

Aug 06 2017 07:42
Justin Brown

Johannesburg - South Africa’s credit rating could be downgraded if the country’s growth and tax collections missed forecasts by a wide berth, said S&P Global analyst Gardner Rusike.

In April, S&P Global downgraded South Africa’s foreign currency rating to “junk” status with a negative outlook.

“When you have a negative outlook, it means there is a risk that the rating could be lowered,” Rusike said.

“If you are getting negative news, it depends to what extent the deterioration will be in the pace of economic growth as well as the fiscal deficit.

READ: Ratings agencies will keep a close eye on SOE guarantees - economist

"If these are within smaller thresholds, then they could potentially be managed ... but if they are much larger than our expectations then that would have a negative impact,” he told City Press on Friday.

In the first quarter of the SA Revenue Service’s financial year starting April 1, the agency collected tax of R261.4 billion – up 5.8% compared with the same period in 2016.

If SARS was to grow its revenue by that margin for the year ending March 2018, then it will miss its tax target of R1.265 trillion by R55 billion. 

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

s&p global  |  sars  |  sa economy  |  downgrades  |  junk status
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...