The Markets | - Part 190

“Junk”-rated debt could cost South Africa more than $10bn in lost funds

JOHANNESBURG (Capital Markets in Africa) – If South Africa loses two of its prized investment grade credit ratings for foreign and local currency borrowing in the turmoil triggered by the sacking of the finance minister, the country could lose more than $10 billion in investment funds. S&P Global has already struck. In an unscheduled review on Monday that prompted a selloff in South African assets, it cut the sovereign rating for external debt to BB+, one…

Fitch: Redenomination Risk and Sovereign Rating Implications

Posted on by The Editorial Team

LONDON (Capital Markets in Africa) – Fitch Ratings says that it is not always possible to say categorically that a sovereign debt redenomination into a different currency would be a default, under Fitch’s sovereign rating criteria. The agency would assess such an event on a case-by-case basis, taking into account all relevant information at the time. In response to recent investor enquiries, in a new report Fitch sets out some potential scenarios involving redenomination of…

South African markets fall sharply after S&P downgrade

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa): South Africa’s rand, bonds and banking shares tumbled sharply on Tuesday after S&P Global Ratings cut the country’s credit rating to junk in response to President Jacob Zuma’s move to sack its respected finance minister. Zuma’s cabinet reshuffle has triggered public criticism from within the ruling African National Congress (ANC) and pressure is likely to mount on the president after the credit agency handed South Africa its first downgrade since…

Rand tumbles after S&P downgrades South Africa to “junk”

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand fell more than 2 percent on Monday to its weakest in almost three months after S&P Global Ratings cut the country’s credit score to sub-investment grade with a negative outlook after last week’s dismissal of the South African finance minister. Stocks were higher on the day, led by gold shares, as demand for the safe-haven asset rose globally in response to worries U.S. President Donald Trump…

Opinions on Removal of South Africa’s Finance Minister Gordhan

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JOHANNESBURG (Capital Markets in Africa) – Financiers, economists, labor leaders, lawmakers and officials from the ruling African National Congress are all having their say on how the decision by South African President Jacob Zuma to fire Finance Minister Pravin Gordhan and other cabinet members will affect the economy, the country’s credit ratings, bonds and the local currency. Colin Coleman, head of sub-Saharan Africa at Goldman Sachs Group Inc, tells Bloomberg TV: The cabinet reshuffle “removes the belt and braces over…

Budget Pain Abating for Ghana Prompts Longest Cedi Bond Sale

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ACCRA (Capital Markets in Africa) – Ghana is selling its longest local-currency bonds as the stabilizing cedi and government steps to rein in a budget shortfall stoke appetite for the West African nation’s debt. The Finance Ministry gave final guidance of 19.75 percent for the 15-yearcallable bonds and is due to stop accepting bids at 3 p.m. in Accra. Yields on the government’s local debt have fallen in the past month, helping the ministry place 1.4 billion…

Nigeria’s stock exchange gets green light for public listing

Posted on by The Editorial Team

LAGOS (Reuters) – The Nigerian Stock Exchange (NSE) has been given a green light by its members to become a publicly listed company, it said on Thursday. The members also approved the appointment of South African bank FirstRand and local investment firm Chapel Hill Denham to guide it through the process of becoming a listed company, the NSE said. The second-biggest bourse in sub-Saharan Africa after Johannesburg and a main entry point for investors in…

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