sp cuts south africas credit rating to junk
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

S&P cuts South Africa's credit rating to 'junk'

Arab Today, arab today

Arab Today, arab today S&P cuts South Africa's credit rating to 'junk'

People rally outside the South African National Treasury on April 3, 2017
Johannesburg - AFP

Credit ratings agency Standard and Poor's downgraded South Africa's rating to junk status on Monday, as pressure on President Jacob Zuma grows following a controversial cabinet shuffle.
S&P said the cut to below investment grade reflects "heightened political and institutional uncertainties" following Zuma's shock purge of critical ministers on Friday, including respected finance minister Pravin Gordhan.
The shake-up has "put at risk fiscal and growth outcomes", the ratings agency added as it downgraded South Africa to BB+ from BBB-.
The rand fell a further two percent against the US dollar on Monday night, after already suffering a five percent drop since Friday.
Moody's ratings agency said it was placing its own South Africa rating -- two notches above "junk" status -- on review for a downgrade, a decision it said was "prompted by the abrupt change in leadership of key government institutions".
Mmusi Maimane, leader of the main opposition Democratic Alliance, branded the S&P downgrade "a clear vote of no confidence in President Zuma".
The president has faced widespread criticism for replacing Gordhan with a loyalist, former home affairs minister Malusi Gigaba.
All of South Africa's main opposition parties have condemned the move, as has deputy president Cyril Ramaphosa, an ANC member, and the communist partners in the ANC's coalition government.
Opposition parties on Monday vowed to press ahead with a no-confidence vote against Zuma, as the ANC's own integrity commission delivered a stinging rebuke over the cabinet shuffle, saying it was "deeply perturbed" by the lack of consultation, according to media reports.
Shortly after his appointment, Gigaba had stressed the need to maintain South Africa's investment grade status.
The treasury issued a statement in response to the S&P downgrade saying it showed the need to "accelerate inclusive growth and development".
"Reducing reliance on foreign savings to fund investment and relying less on debt to finance public expenditure will secure South Africa's fiscal sovereignty and economic independence," it added.
The coutry was granted a reprieve at the end of last year when rating agencies did not drop it to the "junk" category following a series of downgrades.
- 'Remove Jacob Zuma' -
Zuma has survived several no-confidence votes in recent years.
But "when other motions of no confidence failed, we were not facing the crisis that we are facing currently", said the president of the African Christian Democratic Party, Kenneth Meshoe.
"Now it is not only members of the opposition that acknowledge that we have a crisis, but members of the ruling party," he said.
"This is not an academic exercise, we are serious about this," said Maimane. "We are working to remove Jacob Zuma."
With 249 seats, the ANC commands a strong majority in the 400-member parliament. For a no-confidence vote to pass, the opposition would have to secure a simple majority -- meaning at least 50 votes from ANC lawmakers.
Analysts say the no-confidence vote is unlikely to pass.
"I don't see the ANC caucus splitting ranks -- that will be quite a momentous day. It would also give far too much prominence to the opposition, which I don't think even those who dislike Zuma would want to do," said Daniel Silke, an independent analyst.
But Zuma's cabinet overhaul exposed deep divisions within the ANC, and DA officials are confident they can recruit enough support from ruling-party MPs to unseat the president.
"There are quite a number of other colleagues and comrades who are unhappy about this situation, particularly the removal of the minister of finance who was serving the country with absolute distinction," Ramaphosa, the ANC deputy president, said after the reshuffle.


Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sp cuts south africas credit rating to junk sp cuts south africas credit rating to junk

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

sp cuts south africas credit rating to junk sp cuts south africas credit rating to junk

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday