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South Africa Avoids a Second Fitch Cut as Rating Affirmed

JOHANNESBURG (Capital Markets in Africa) – South Africa avoided a second downgrade in two months from Fitch Ratings Ltd. as the company left its assessment of the nation’s debt at the highest non-investment grade. The local- and foreign-currency ratings were affirmed at BB+, Fitch said in an emailed statement Thursday. The outlook on both assessments was kept at stable. Fitch and S&P Global Ratings cut their assessments of South Africa’s foreign-currency debt to the highest junk level in…

“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…

South African markets fall sharply after S&P downgrade

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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…

South Africa’s credit rating downgraded to junk by S&P after finmin changed

Posted on by The Editorial Team

JOHANNESBURG (Capital Markets in Africa) – S&P Global Ratings downgraded South Africa’s sovereign credit rating to BB+ from BBB- grade on Monday, saying the recent firing of its internationally respected finance minister posed a risk fiscal policy. The rand fell by as much 2 percent to the dollar in response to the news of the downgrade, while government bonds also weakened sharply. “The downgrade reflects our view that the divisions in the ANC-led government that…

S&P/FMDQ Nigeria Sovereign Bond Index Launched To Mark Signing of MOU

Posted on by The Editorial Team

LONDON, FEB 8, 2017: FMDQ OTC Securities Exchange (“FMDQ”), an organization fostering the development of the Nigerian over-the-counter (OTC) financial markets, and S&P Dow Jones Indices (S&P DJI), one of the world’s leading providers of financial market indices, announced today the signing of a Memorandum of Understanding for a strategic agreement to create and launch new, co-branded fixed income-based indices. The signing took place at a ceremony in Lagos. The agreement marks S&P DJI’s first-ever…

S&P Downgrades Nigeria Further Into Junk as Oil Crisis Worsens

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LAGOS, Capital Markets in Africa: S&P Global Ratings downgraded Nigeria further into junk territory as Africa’s most populous nation struggles amid low oil prices and severe shortages of foreign-exchange. S&P lowered Nigeria’s rating one level to B, five levels below investment grade and in line with Kyrgyzstan and Angola. The outlook was changed from negative to stable. “Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive…

S&P may reduce Nigeria Credit Ratings

Posted on by The Editorial Team

S&P may cuts Nigeria Credit RatingsStandard & Poor’s Ratings Services put Nigeria’s credit ratings on watch for potential downgrade following the fall in oil prices and continued political instability according to S&P’s analysts led by Ravi Bhatia wrote in the statement: “Political risks also remain significant”. Nigeria is the latest country that S&P has docked for reasons related to oil. Its BB-rating is three notches below investment-grade territory. In light of the months long oil slump,…