Fitch or will follow the S & P footsteps
Analysts said the rating agency Fitch may follow the pace of S & P standards, the South African sovereign credit rating down to below the investment grade. South Africa's rating on Fitch will highlight the concerns of the outside world about its political uncertainty, prompting South Africa's assets to be sold further.
Standard & Poor's downgraded South Africa's credit rating to junk on Monday, saying the respected Treasury secretary, Pravin Gordhan, was replaced, suggesting a devastating policy shift.
"In the next 7-10 days, Fitch may be the next downgraded South African rating agency, with the S & P downgraded to BB +, which means that the three major rating agencies, two South African foreign currency level down For the junk level, "said Banc of BNP Paribas Securities analyst Jeffrey Schultz on Thursday.
If at least two rating agencies are lowered to junk levels, South Africa will be partially outsourced by the widely used global bond index and forced to sell to South Africa or to an international fund that is prohibited from holding securities with the following investment grade.
Fitch said the South African President Zuma (Jacob Zuma) Cabinet reorganization highlights the political risk, suggesting that policy changes, the risk of South Africa rating. Fitch currently gives South Africa a rating rating of BBB-. Fitch did not say when to announce its rating review, but analysts said they might soon be announced.
Standard & Poor's downgraded South Africa's credit rating to junk on Monday, saying the respected Treasury secretary, Pravin Gordhan, was replaced, suggesting a devastating policy shift.
"In the next 7-10 days, Fitch may be the next downgraded South African rating agency, with the S & P downgraded to BB +, which means that the three major rating agencies, two South African foreign currency level down For the junk level, "said Banc of BNP Paribas Securities analyst Jeffrey Schultz on Thursday.
If at least two rating agencies are lowered to junk levels, South Africa will be partially outsourced by the widely used global bond index and forced to sell to South Africa or to an international fund that is prohibited from holding securities with the following investment grade.
Fitch said the South African President Zuma (Jacob Zuma) Cabinet reorganization highlights the political risk, suggesting that policy changes, the risk of South Africa rating. Fitch currently gives South Africa a rating rating of BBB-. Fitch did not say when to announce its rating review, but analysts said they might soon be announced.