S&P’s fear of ‘budgetary slippage’ by new Finance Ministry moved it to downgrade

Standard and Poor’s says that “the economic crises President Jacob Zuma plunged the country into with his midnight cabinet reshuffle” prompted it to hold an emergency meeting instead of the scheduled review on 2 June.

It’s at that meeting the ratings agency decided to downgrade South Africa’s sovereign credit rating.

Arabile Gumede (in for Bruce Whitfield on The Money Show) interviewed S&P Global Ratings Credit Analyst Ravi Bhatia.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

With this move we think the risk of budgetary slippage is higher than it used to be.

Ravi Bhatia, Standard and Poor’s

The Finance Ministry is in the eye of the storm.

Ravi Bhatia, Standard and Poor’s

If growth improves - and the fiscus is kept under control - then there’s no reason why South Africa can’t go back to investment grade.

Ravi Bhatia, Standard and Poor’s

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