South Africa’s efforts to rein in fiscal discipline may be bold but not quite enough to prevent a ratings downgrade later this year. Ratings agencies, Moody's Fitch and S&P, who have the country on a negative outlook, say there's still a 30% chance South Africa could lose its credit rating. Low growth, political uncertainty and the burden of parastatals on the fiscus remain major concerns for the ratings agencies. Finance Minister Pravin Gordhan this week warned of a widening budget deficit and higher taxes as a result of lower growth and falling revenue. He committed to cut public spending. Reviews from all three of the ratings agencies are expected in December.
- South Africa