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South African banking group says impact of Fitch downgrade will be "dire"
April 7, 2017 / 1:34 PM / 7 months ago

South African banking group says impact of Fitch downgrade will be "dire"

JOHANNESBURG, April 7 (Reuters) - South Africa’s Banking Association (BASA) said on Friday that Fitch’s decision to downgrade the country’s credit rating to “junk” would make it more difficult for bank’s to attract foreign investment, adding that President’s Jacob Zuma’s cabinet reshuffle was to blame.

“The fact that Fitch has directly attributed its downgrade to the actions of the president demonstrates in no uncertain terms the broad assertion that the cabinet reshuffle ... was not in the national interest,” the body said.

Fitch downgraded South Africa’s foreign and local currency debt to speculative grade, while S&P Global Ratings on Monday cut the hard currency borrowing to “junk”. Both cited likely changes in economic policy after a cabinet reshuffle. (Reporting by Mfuneko Toyana; Editing by James Macharia)

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