All three credit rating agencies recent decisions on South Africa means the country has some time to get its house in order.
“Although S&P lowered the local currency rating it still remains above junk status‚” said business leader‚ economist and professor Raymond Parsons of North-West University's School of Business & Governance after the announcement was made on Friday evening.
But he warned that the “underlying strong and converging messages” of the rating agencies‚ which now reflect negative outlooks‚ should be taken seriously by the public and private sectors.
“Together with Moody's and Fitch‚ these decisions must therefore be seen as friendly warnings‚ rather than as reprieves‚” he said‚ adding that economy remains on the cusp of junk status.
He said government‚ business and labour needed to implement policies that would boost the country’s growth to staving further downgrades.
“Investor confidence remains a key requirement to underpin growth and job creation‚ and to avoid a 'low growth trap'‚” he said.
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