Credit rating agencies are keeping a keen eye on South Africa as the country awaits the final results of the municipal elections.
Investment and banking group Old Mutual says that ratings agencies have watched to see if the electoral process has been peaceful and democratic.
It had the potential to be negative, but given that it went fairly well, we see that as being neutral in terms of their decision-making.— Graham Tucker, Old Mutual Balanced Fund Manager
Old Mutual's Graham Tucker says the outcome of the elections will not be a deciding factor for the ratings agencies.
However, he explains that government's reaction to the results will be a point of focus instead.
According to Tucker, ratings agencies are concerned with the state of South Africa's parastatals, growth-enhancing reform and fiscal discipline.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies: