The decision means that the country has avoided being downgraded to ‘junk’ status, but remains just one notch above this sub-investment grade. Experts have warned that a downgrade of South Africa’s credit rating, could push the country into a recession.
Ratings agency Moody’s recently kept the country’s credit rating unchanged at Baa 2 – just two notches above junk status, with a negative outlook.
Chamber of Mines CEO Roger Baxter believes that this outcome is “in line with the reality of the situation”
He also noted that this rating gives the country no room for complacency.
Following S&P’s rating, the Chamber said it will play its part in working with other elements of organised business, with government and with organised labour to do what is necessary to sustain an investment grade rating and hopefully, ultimately, to improve that rating.