NAN-F-22
Situation
Cape Town, Oct. 13, 2016 (Reuters/NAN) The Africa Head of Ratings Agency Standard & Poor’s (S&P), said on Thursday the current situation in South Africa was “not business as usual.
He cited the “political turmoil and tension” as worrying signs ahead of a ratings decision on Dec. 2.
Addressing the Africa summit in Cape Town, Konrad Reuss said S&P would be closely looking at South Africa’s economic growth trajectory and fiscal targets.
Reuss said after the national prosecuting authority said it planned to charge Finance Minister Pravin Gordhan with fraud.
It was a ploy widely seen as an attempt by President Jacob Zuma to take control of the Treasury by removing the respected technocrat.
“This is not about political noise. We have political turmoil, political tension that can undermine structural reforms”, Reuss said.
He said that any attempt to undermine South African state institutions would be negative for the rating.
S&P rates South Africa at BBB, the lowest investment grade rating one notch above junk, and it maintained that rating in June while keeping its outlook negative, citing slow economic growth and political concerns.
(Reuters/NAN)
OYE/IEA
Edited by Damilola Oyewole/Idahosa Asowata