Senior economist at NKC African Economics Elize Kruger says if South Africa had not seen positive political developments over the past 6 months, the country could have easily received another downgrade.
This follows a decision by Standard & Poor’s Global not to further downgrade the country's credit ratings.
S&P affirmed South Africa’s foreign and local currency ratings at BB and BB+, with a stable outlook.
I think S&P recognises that there has been a change in South Africa particularly with regards to our political dispensation which has some powerful impact in terms of confidence levels....— Elize Kruger, Senior economist at NKC African Economics
Kruger says that the rating agency believes that South Africa’s ratings are constrained by a weak pace of growth, a large fiscal debt burden, and sizable contingent liabilities.
They said they would like to see an upside in terms of growth and fiscal scenario before they could consider an upgrade from the current levels.— Elize Kruger, Senior economist at NKC African Economics
I think our new President has done well in the past 3 months to get the ball rolling in the right direction...— Elize Kruger, Senior economist at NKC African Economics
To hear the rest of the interview with economist, Elize Kruger, listen below:
This article first appeared on 702 : Ramaphosa has done well in helping SA avoid further downgrades - economist