The Markets | - Part 194

Junk for South Africa as Fitch Joins S&P in Cut on Politics

JOHANNESBURG (Capital Markets in Africa) – South African debt got dealt a second blow in a week as Fitch Ratings Ltd. joined S&P Global Ratings and cut the nation’s credit assessment to junk following President Jacob Zuma’s move to fire a well-respected finance minister. Fitch reduced the foreign-currency rating to BB+, the highest non-investment grade and on par with Turkey and Portugal, four days after S&P reduced its assessment. The local-currency rating was also lowered one level to…

South Africa Stock Volumes Plunge as Protesters Rally Nationwide

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – Tens of thousands of protesters marched in South Africa to demand that President Jacob Zuma resigns after he fired the finance minister and reshuffled the cabinet. Marchers chanting “Zuma must go” in Pretoria, the capital, walked to the Union Buildings, the official seat of government, while thousands of people faced riot police outside the chained gates of parliament in Cape Town, and rallied in Durban and Port Elizabeth. In Johannesburg, eNCA…

Rand, Bonds Fall as South Africa Junk Rating Triggers Index Exit

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – South Africa’s rand and dollar bonds fell after Fitch Ratings Ltd. became the second company to cut the country’s credit assessment to junk, triggering sales by some investors tracking investment-grade debt indexes. JPMorgan Chase & Co. said it would remove South Africa from gauges tracked by $59 billion of funds. President Jacob Zuma plunged South Africa into a political crisis when he fired Finance Minister Pravin Gordhan in a cabinet purge just after midnight on…

Ivory Coast to Receive IMF Budget Support as Cocoa Slumps

Posted on by The Editorial Team

ABIDJAN (Capital Markets in Africa) – Ivory Coast will receive additional assistance from the International Monetary Fund to support its 2017 budget after cocoa prices slumped, hurting the finances of the biggest grower of the crop. The IMF’s board will meet in June to decide on the amount of support, Dan Ghura, the Washington-based lender’s mission chief, told reporters late Wednesday in the commercial capital, Abidjan. The assistance will come as the IMF visited the West…

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

Posted on by The Editorial Team

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…

« 1 … 192 193 194 195 196 … 260 »