Could Brics ratings agencies take a different view on SA?

University of Pretoria visiting professor, Adrian Saville, says Brics (Brazil, India, China, Russia and South Africa) rating agencies could have a different outcome than that of the big three credit rating agencies, Standard & Poor's (S&P), Moody's and Fitch Group.

S&P and Fitch downgraded South Africa’s credit rating to junk status.

President Jacob Zuma has previously said Brics countries had taken the decision that they could rate themselves to ensure a more "balanced view".

Saville explains the pros and cons if South Africa were to be rated by Brics rating agencies.

The three large rating agencies do share a single perspective. They come from similar schools of thought. So you don't get an alternative perspective and challenge to the common view.

Prof Adrian Saville, Gordon Institute of Business Science, University of Pretoria

A different rating agency built out of a different school of thought could certainly have merit, whether its Brics.

Prof Adrian Saville, Gordon Institute of Business Science, University of Pretoria

There is certainly the place for different perspectives.

Prof Adrian Saville, Gordon Institute of Business Science, University of Pretoria

You can go to anyone you like and ask them to assess you... but what's key in this is that the rating agencies need to have statue and gravity in the eyes of investors. It would require time for these rating agencies to establish that reputation and to be regarded as equivalent or better assessors and guiders of risk.

Prof Adrian Saville, Gordon Institute of Business Science, University of Pretoria

Listen to the audio below for more analysis...


Recommended

by NEWSROOM AI
Read More
Rand went from world’s best in 2017 to its worst on Zuma’s reshuffle

Rand went from world’s best in 2017 to its worst on Zuma’s reshuffle

The Money Show’s Bruce Whitfield interviews Rand Merchant Bank Currency Strategist John Cairns.

Zuma says protests against him reveal racism is still alive

Zuma says protests against him reveal racism is still alive

The President has called for unity and co-existence amongst South Africans.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

ANC's subcommittee on economic transformation won’t rule out  a recession

ANC's subcommittee on economic transformation won’t rule out a recession

On Sunday, the committee held a briefing on the party’s economic transformation discussion document.

Eskom pushing ahead with nuclear build programme

Eskom pushing ahead with nuclear build programme

Eskom chief nuclear officer says it's all systems go for the government's nuclear build programme.

ANC MP Makhosi Khoza writes about "leadership injudiciousness" in the party

ANC MP Makhosi Khoza writes about "leadership injudiciousness" in the party

Concerned ANC MP Dr Makhosi Khoza writes a heart felt Facebook post detailing immoral leadership and personal challenges.

'Ministers (and their friends) celebrating impoverishment of South Africans'

'Ministers (and their friends) celebrating impoverishment of South Africans'

Economist Lumkile Mondi says South Africans are heading for difficult times while certain government officials are celebrating.

JUST IN: Fitch second ratings agency to slap SA with junk status

JUST IN: Fitch second ratings agency to slap SA with junk status

Ratings agency Fitch has followed suit after S&P cut South Africa's sovereign credit rating to below investment-grade.

Zuma responsible for SA downgrade - Fedusa Secretary General

Zuma responsible for SA downgrade - Fedusa Secretary General

The Federation of Unions of South Africa joins Save SA #AntiZuma protest to the Union Buildings.

Is your money in the bank safe? Banking Association on S&P's downgrade of banks…

S&P has downgraded South African banks. Banking Association of SA’s Cas Coovadia discusses the development on The Money Show.

How to ensure your small business survives the current situation in South Africa

How to ensure your small business survives the current situation in South Africa

Small business guru Pavlo Phitidis advises entrepreneurs on how to adapt to a country in flux.

Brexit… Trump… Cabinet reshuffle…  Face your fears! Here’s where to invest…

Brexit… Trump… Cabinet reshuffle… Face your fears! Here’s where to invest…

Did you know? Currencies and markets usually strengthen in the 12 months after a downgrade.

Clients do not have to worry about banks downgrade  - Cas Coovadia

Clients do not have to worry about banks downgrade - Cas Coovadia

The Banking Association of South Africa's (Bassa) Cas Coovadia says banks have enough capital to handle the downgrade.

Consequences of being downgraded to junk status: Magda Wierzycka

Consequences of being downgraded to junk status: Magda Wierzycka

Chief Executive Officer of Sygnia Group explains in detail what South Africa would have to go through as a result of a downgrade.

What's in a downgrade? Economist Lesiba Mothata explains

What's in a downgrade? Economist Lesiba Mothata explains

Lesiba Mothata says SA's junk rating should not be taken lightly and explains the implications, in light of our trade deficit.

How SA’s reshuffle to ‘junk status’ will affect your pocket

How SA’s reshuffle to ‘junk status’ will affect your pocket

Anxious The Money Show listeners are asking about the effect of the ratings downgrade their finances.

What South Africa’s reshuffle to 'junk status' means for your pension fund

What South Africa’s reshuffle to 'junk status' means for your pension fund

Arabile Gumede (on The Money Show) interviews ZAR-X CEO Etienne Nel.

Gigaba claims S&P forewarned him of downgrade in confidence

Gigaba claims S&P forewarned him of downgrade in confidence

The new Finance Minister addressed the media and said he could not share the information prior to the announcement.

Markets not badly affected by downgrade - analyst

Markets not badly affected by downgrade - analyst

Standard & Poor's downgraded South Africa's credit rating to junk status or double B plus but markets factored in the inevitable.

What being downgraded to junk status really means

What being downgraded to junk status really means

Wits Professor Patrick Bond and Financial Mail's Sikonathi Mantshantsha share their insights into the latest S&P downgrade.

"It would have been nice to receive a phonecall" - Gordhan

"It would have been nice to receive a phonecall" - Gordhan

Former Finance Minister speaks to Bruce Whitfield about how he heard his services were no longer required.

South Africa counts down to last rating agency announcement today

South Africa counts down to last rating agency announcement today

Standard & Poor’s Global will today announce whether it is downgrading South Africa and analyst predicts it will remain unchanged.

'Leaders shouldn't be destructed from urgent need for inclusive economy'

'Leaders shouldn't be destructed from urgent need for inclusive economy'

Standard Bank CEO says changing country's leadership shouldn't destruct leaders from an urgent need to generate fast growth.

Fitch keeps SA credit rating unchanged

Fitch keeps SA credit rating unchanged

Fitch has listed a number of issues, including increase in political risks standards of governance, as factors to its decision.

Popular articles
[WATCH] Fikile Mbalula's funny interview has social media in stitches

[WATCH] Fikile Mbalula's funny interview has social media in stitches

Khabazela shares tweets and Facebook posts that have gone viral.

 Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Eskom buys fine coal that looks like baby powder when wet, says expert Ted Blom

Energy analyst Ted Blom weighs in on the energy crisis in South Africa as load shedding stage 2 is implemented.

SA's Zozibini Tunzi simply the best, crowned Miss Universe 2019

SA's Zozibini Tunzi simply the best, crowned Miss Universe 2019

The 26-year-old is the third South African to be crowned Miss Universe and has made the country proud.

Want to start a small business? Lessons from a successful serial entrepreneur...

Want to start a small business? Lessons from a successful serial entrepreneur...

The Money Show’s Bruce Whitfield interviews Nic Haralambous, founder (at the cost of R5000!) of funky sock company Nic Harry.

Considering emigration? Financial planner discusses the affordability of leaving

Considering emigration? Financial planner discusses the affordability of leaving

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

'SAA’s collapse plays nicely into hands of a politically constrained Ramaphosa'

After dithering for fear of spending political capital, SAA is now out of the President’s hands, says Pieter du Toit (News24).

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

There is no Ubuntu in how Khanya Cekeshe has been treated - Thuli Madonsela

Former public protector says the eight-year sentence was too harsh and it shouldn't matter that he was not a Wits student.

‘South Africans are getting poorer and poorer because of politics’

‘South Africans are getting poorer and poorer because of politics’

SAA is a classic example, says Isaah Mhlanga, Chief Economist at Alexander Forbes Investments.

How to make your first R1 million (after that it just becomes so much easier)

How to make your first R1 million (after that it just becomes so much easier)

Rich. Wealthy. Financially free... Call it what you will; the first million is how you get there. Warren Ingram on his book...