Karl Gevers,Co-Founder And Portfolio Manager At Benguela Global Fund
Loading player...
South African lenders are likely to suffer limited fallout from the country’s descent deeper into junk after Moody’s Investors Service and Fitch Ratings lowered their credit assessments last week.
Finance Minister Tito Mboweni said on Saturday the downgrades and negative outlooks will knock borrowing costs while urging the government to implement “much-needed structural economic reforms.” Bank ratings are capped at the level of the sovereign, which means the likes of Standard Bank Group Ltd. and FirstRand Ltd. will see their ratings fall.
Finance Minister Tito Mboweni said on Saturday the downgrades and negative outlooks will knock borrowing costs while urging the government to implement “much-needed structural economic reforms.” Bank ratings are capped at the level of the sovereign, which means the likes of Standard Bank Group Ltd. and FirstRand Ltd. will see their ratings fall.
