S&P Sees Possibility of S. Africa Downgrade to Junk as `Remote'
- Country's credit metrics not `going over a cliff,' Reuss says
- S&P questioning whether outlook captures lack of improvement
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South Africa is unlikely to immediately face credit downgrades that will rank the country’s debt junk at two ratings companies, according to Standard & Poor’s.
“Losing two investment-grade ratings, that could be very disruptive” for markets and capital flows, Konrad Reuss, S&P’s sub-Saharan Africa Managing Director, said at the 13th Annual African Capital Markets Conference in Cape Town on Thursday. “But that’s a very remote possibility.”