WHAT HAPPENED WHAT OTHERS SAID
TWO DOWNGRADING shocks for South Africa in a single week (whether justified or not) rubbed salt into the wounds of the country’s economy. The first downward adjustment came from rating agency Fitch, which adjusted its rating prospects for SA to negative. Fitch also downgraded banks Investec, Nedbank and Absa. Standard & Poor’s rating is now also negative. BUSINESS DAY said the Achilles heel of the SA economy – its large current account deficit – was again used against it in both downgradings. It warned ways would have to be found urgently to improve SA’s export sectors and a savings culture must be established. Beeld said both ratings unfortunately have a major impact on the mood of the foreign exchange market.