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Ratings Agency Cut South Africa's Credit Rating to Junk Status

  • As per reports, ratings agency S&P Global cut credit rating of South Africa to junk status. As mentioned by the agency, firing finance minister Pravin Gordhan was putting the economy in danger.

    The agency further expressed concerns over government debt and the expense of supporting Eskom, the state energy firm.

    It came as a pressure on rand which was already down 2% against the dollar.

    After the financial downgrading, South Africa may find it more expensive to borrow money on the global market as lending funds to the country may turn out to be riskier.