Standard & Poor’s has decided to keep it's rating for South Africa unchanged at triple b-minus, with a negative outlook - avoiding junk status - and a huge relief for the country.
Eye Witness News reports that the decision to keep the rating unchanged means that finance Minister Pravin Gordhan, along with the Treasury, business and unions, have done enough to keep the country from falling into junk status.
The country's been struggling with poor economic growth, with latest estimates saying it's around point-five percent.
Economists have warned that a downgrade by S&P Global to junk status could have a number of consequences for the country.
Earlier this week, economist Dieter von Fintel said, “The real concern for an ordinary South African is what it is going to do for interest rates, what it is going to do for the exchange rate and what’s it going to do for investor confidence.”
Market analyst Jana van Deventer said junk status could force the Reserve Bank’s hand to raise interest rates.
