Finance Minister says SA is at risk of losing its investment-grade credit-rating status

Chumani Simelela

04 March 2016

In a post-budget briefing in Johannesburg on Thursday Finance Minister said “South Africa can’t avoid a credit-rating downgrade with good fiscal numbers alone”.

He continued saying “There was a time when ratings agencies would take their matrix and tick the boxes to say ‘fiscally you look sound”.

“He concluded by saying “In the last six years the goalposts have shifted, and it now includes fiscal stability, indebtedness, where growth is going to come from and the political economy”.

“In his budget, Gordhan cushioned low-income earners by targeting tax increases at the wealthy and cut spending plans as he sought to support an economy set to grow at the slowest pace since the 2009 recession without increasing the debt burden”.

“South Africa is at risk of losing its investment-grade credit-rating status because of slowing growth and rising debt”.