Retreat Of The Consumer

February 2008 | Ratings Update

Ratings agency Fitch warned on February 5 that political risk is on the rise in South Africa, with the pending corruption trial of Jacob Zuma and the growing influence of the left in the African National Congress (ANC) posing the greatest threat to policy continuity. While South Africa's 'BBB+' sovereign credit rating, which enjoys a positive outlook, is not subject to change yet, noticeable changes to policy could potentially trigger a downgrade. In light of increasing political uncertainty, we have already revised down our short-term political risk rating to 72.1 from 78.3 last month's issue, with risks firmly to the downside over the course of 2008.

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