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Junk Status – what it means

It has happened! For months we, as a nation, have been struggling and fighting not to be downgraded to junk status, but on Monday, 3 April 2017, following the cabinet reshuffle, it was announced that South Africa’s sovereign credit rating was cut. However, what does that mean?

S&P ratings downgrade unscheduled!

On 3 April 2017, Standard and Poor’s Ratings Services decided to cut South Africa’s international credit rating from BBB- to BB+. A rating of BB+ is considered below investment grade (sometimes referred to as "junk status”). Unfortunately, the negative ratings outlook was also retained, suggesting that S&P could revise the country’s credit rating lower at year-end should the fiscal parameters deteriorate significantly.

A NEW ERA FOR SA’S TREASURY

South African President, Jacob Zuma, has decided to remove the Finance Minister Pravin Gordhan and his deputy, Mcebisi Jonas, from their posts.

TFSAS – WHEN ARE THEY APPROPRIATE?

Much has been written about Tax Free Savings and Investment Accounts (TFSAs) and there was considerable excitement when these vehicles were first launched. While...

IS A FED RATE HIKE A FOREGONE CONCLUSION?

Although markets have started pricing in a December rate hike by the US Federal Reserve (Fed) PSG Wealth believes there is a strong argument...

INVESTMENT PROSPECTS LOOKING UP

After narrowly escaping Fitch and Moody’s downgrades last week, South Africa is still on tenterhooks over S&P’s rating decision. But investors should beware of...

INVESTMENT MIX CRITICAL!

Investment costs should be a key consideration in any long-term investment strategy. Whatever the financial service industry deducts for administration, advice, commission, trading, investment...

FOCUS ON SMALLER BUSINESSES

The African growth story is no longer a fairy tale. Over the past decade multinational companies, private equity funds and infrastructure development programmes have...

SA HEDGE FUNDS – PERFORMANCE AND QUALITY DEFY QUANTITY

In the words of Alexander Graham Bell, "when one door closes, another opens, but we often look so long and so regretfully upon the...

ROBO-ADVISORS MAY COST YOU!

With new technology in the form of "robo-advisors” making its way to South Africa, investor empowerment on the increase, alongside the popularity of index...
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