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Showing posts from May, 2019

Junk Status Looms?

Is it possible that this is happening, because investors have started disinvesting from South Africa? https://www.businessinsider.co.za/jse-declines-so-far-this-year-2019-5

A storyboard for a video

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Dear Moody's, I see that it is left to me, an Activated Citizen to dispel a myth in your mind. You say that South Africa must change its Policy but as I will demonstrate, South Africa already has Robust Policy and I’ll presently present where the real problem is. “However, in the absence of effective policy change, the sovereign’s credit profile will most likely continue to erode, with fiscal strength weakening and growth remaining low.” Moody’s Sees South Africa’s Growth Outlook Remaining Weak Moody's Debt Projection as at May 16th, 2019 South Africa's Growth Outlook Remains Weak, Moody’s Says And there is a potential downgrade to Junk status for the whole of South Africa, coming up in November 2019. "Standard & Poor’s global has just announced South Africa’s sovereign credit rating has been downgraded to double B plus, according to EWN." 3/4/2017 Fitch: 7/4/2017: downgrades South Africa to Junk Status Junk Status, means less than Investment G

Junk

In 2017, Standard and Poor's and Fitch, downgraded South Africa's Sovereign Investment Status to "Junk". "Junk" means that an investment is below investment grade. And this means that certain people cannot invest or lend to Junk Status people, companies or governments, and if they have invested, they need to withdraw their investments. The third International Ratings Agency, Moodys, has kept South Africa just above Junk, giving the international investors lots of time to decide what to do if South Africa gets to Junk status, and also allowing international investments to continue. But Moody's could reduce South Africa's sovereign investment rating to Junk, in November 2019, and the Citizens of South Africa should do everything in our power to prevent this.