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S&P executive gives SA performance outlook for 2020

14 January 2020 8:15 AM
Tags:
South Africa
S&P Global
economic outlook

Sub-Saharan Africa managing director Konrad Reuss addresses the country's economic forecast for the upcoming year.

South Africa's economic and governance problems have mounted over the past few years, the country has faced pressure to increase its economic growth, tackle policy uncertainty and stabilise its debt to avoid credit rating downgrades.

The primary sources of data Standard & Poor’s Global (S&P) use to determine South Africa’s credit rating comes from domestic institutions like Statistics South Africa, the South African Reserve Bank (Sarb) and the National Treasury.

RELATED: 'I don't think that other rating agencies will follow suit'

Bongani Bingwa chats to the rating agency's Sub-Saharan Africa managing director, Konrad Reuss, to address the country's economic problems and how the agency's rating work.

S&P's outlook on South Africa has taken the country from stable to a negative outlook and this speaks to the South African governments sovereign rating, Reuss adds.

A sovereign rating speaks to the creditworthiness of a government. Governments use the ratings to come to markets to issue debt in the market and investors use the ratings to make investment decisions. For S&P the downgrading cycle started in 2012. With the economy weakening and showing continuing signs of weakening around 2012, we started the downgrade cycle.

Konrad Reuss, Sub- Saharan Africa managing director - S&P

He says he is hopeful that South Africa's sovereign rating cycle will improve.

Listen below to the full conversation:


14 January 2020 8:15 AM
Tags:
South Africa
S&P Global
economic outlook

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