SA rating intact on Zuma vote
SA rating intact on Zuma vote

SA rating intact on Zuma vote

Political risks remain elevated though, carrying risks for the South African economy, says the S&P Global ratings agency.
REUTERS
South African President Jacob Zuma's survival in a parliamentary no-confidence vote will not impact the country's downgrade-threatened credit rating, the S&P Global agency said yesterday.

Zuma survived a no-confidence motion against him in on Tuesday by winning 198 votes to the opposition's 177 votes as African National Congress lawmakers rallied to his support, though some members did vote against him.

“Failure of no-confidence vote means status quo remains,” S&P's primary analyst for South Africa Gardner Rusike told Reuters.

“The situation remains within our base-case scenario which is desirable.”

Rusike said, however, that political risks remain elevated, carrying risks for the South African economy.

The sizable number of ANC parliament members voting with the opposition was “unexpected” and showed divisions within the party, Rusike said. That could impact the December 2017 ANC elective conference and perhaps even national elections in 2019.

Rusike also said a proposed near $1 billion bailout of South Africa's national airline, South Africa Airways, was unlikely to cause a further rating downgrade.

“This bailout (South African Airways) is taken into account at the level of moderate contingent liabilities,” he said.

A key issue, especially for South Africa's local currency debt rating, is the recent talk about nationalising the country's respected central bank.

Local South African debt still carries an investment grade rank and loss of this could see more than $10 billion flee the country's rand-denominated debt markets

“We do believe that South Africa has a deep domestic debt market and we also believe the central bank is independent and has credibility to implement monetary policy, as well the government's fiscal flexibility.”

“If either of these factors were to weaken, that is what could potentially result in equalising the foreign currency rating and the local currency rating,” Rusike said.

“We do believe that it may not be implemented either in the near term or the medium-term.”

NAMPA/REUTERS

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European Championships Qualifying: Southampton 3 vs 0 Preston North End English Championship: Southampton 3 vs 0 Preston North End Katima Mulilo: 17° | 34° Rundu: 17° | 34° Eenhana: 18° | 35° Oshakati: 20° | 35° Ruacana: 18° | 35° Tsumeb: 19° | 33° Otjiwarongo: 17° | 31° Omaruru: 19° | 34° Windhoek: 17° | 31° Gobabis: 18° | 31° Henties Bay: 17° | 23° Wind speed: 26km/h, Wind direction: S, Low tide: 07:25, High tide: 13:40, Low Tide: 19:24, High tide: 01:48 Swakopmund: 16° | 19° Wind speed: 30km/h, Wind direction: SW, Low tide: 07:23, High tide: 13:38, Low Tide: 19:22, High tide: 01:46 Walvis Bay: 19° | 26° Wind speed: 36km/h, Wind direction: SW, Low tide: 07:23, High tide: 13:37, Low Tide: 19:22, High tide: 01:45 Rehoboth: 18° | 31° Mariental: 22° | 33° Keetmanshoop: 23° | 35° Aranos: 20° | 32° Lüderitz: 18° | 34° Ariamsvlei: 23° | 37° Oranjemund: 15° | 27° Luanda: 27° | 30° Gaborone: 19° | 32° Lubumbashi: 17° | 26° Mbabane: 15° | 28° Maseru: 11° | 26° Antananarivo: 13° | 25° Lilongwe: 16° | 26° Maputo: 20° | 31° Windhoek: 17° | 31° Cape Town: 16° | 21° Durban: 18° | 28° Johannesburg: 16° | 28° Dar es Salaam: 24° | 29° Lusaka: 18° | 28° Harare: 15° | 28° Currency: GBP to NAD 23.64 | EUR to NAD 20.36 | CNY to NAD 2.64 | USD to NAD 19.14 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.02 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.64 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 133.99 | USD to AOA 832.83 | USD to BWP 13.88 | USD to EGP 48.29 | USD to KES 132.98 | USD to NGN 1147.53 | USD to ZAR 19.14 | USD to ZMW 25.65 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73271.44 Up +0.38% | Namibian Stock Exchange (NSX) Overall Index 1531.99 Up +0.70% | Casablanca Stock Exchange (CSE) MASI 13455.65 Up +0.53% | Egyptian Exchange (EGX) 30 Index 28332.65 Down -4.5% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 392.10/OZ UP +0.51% | Copper US$ 4.46/lb UP +1.10% | Zinc US$ 2 863.10/T UP 1.46% | Brent Crude Oil US$ 87.47/BBP UP +0.36% | Platinum US$ 927.16/OZ DOWN -0.0097 Sport results: European Championships Qualifying: Southampton 3 vs 0 Preston North End English Championship: Southampton 3 vs 0 Preston North End Weather: Katima Mulilo: 17° | 34° Rundu: 17° | 34° Eenhana: 18° | 35° Oshakati: 20° | 35° Ruacana: 18° | 35° Tsumeb: 19° | 33° Otjiwarongo: 17° | 31° Omaruru: 19° | 34° Windhoek: 17° | 31° Gobabis: 18° | 31° Henties Bay: 17° | 23° Wind speed: 26km/h, Wind direction: S, Low tide: 07:25, High tide: 13:40, Low Tide: 19:24, High tide: 01:48 Swakopmund: 16° | 19° Wind speed: 30km/h, Wind direction: SW, Low tide: 07:23, High tide: 13:38, Low Tide: 19:22, High tide: 01:46 Walvis Bay: 19° | 26° Wind speed: 36km/h, Wind direction: SW, Low tide: 07:23, High tide: 13:37, Low Tide: 19:22, High tide: 01:45 Rehoboth: 18° | 31° Mariental: 22° | 33° Keetmanshoop: 23° | 35° Aranos: 20° | 32° Lüderitz: 18° | 34° Ariamsvlei: 23° | 37° Oranjemund: 15° | 27° Luanda: 27° | 30° Gaborone: 19° | 32° Lubumbashi: 17° | 26° Mbabane: 15° | 28° Maseru: 11° | 26° Antananarivo: 13° | 25° Lilongwe: 16° | 26° Maputo: 20° | 31° Windhoek: 17° | 31° Cape Town: 16° | 21° Durban: 18° | 28° Johannesburg: 16° | 28° Dar es Salaam: 24° | 29° Lusaka: 18° | 28° Harare: 15° | 28° Economic Indicators: Currency: GBP to NAD 23.64 | EUR to NAD 20.36 | CNY to NAD 2.64 | USD to NAD 19.14 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.02 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.64 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 133.99 | USD to AOA 832.83 | USD to BWP 13.88 | USD to EGP 48.29 | USD to KES 132.98 | USD to NGN 1147.53 | USD to ZAR 19.14 | USD to ZMW 25.65 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73271.44 Up +0.38% | Namibian Stock Exchange (NSX) Overall Index 1531.99 Up +0.70% | Casablanca Stock Exchange (CSE) MASI 13455.65 Up +0.53% | Egyptian Exchange (EGX) 30 Index 28332.65 Down -4.5% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 392.10/OZ UP +0.51% | Copper US$ 4.46/lb UP +1.10% | Zinc US$ 2 863.10/T UP 1.46% | Brent Crude Oil US$ 87.47/BBP UP +0.36% | Platinum US$ 927.16/OZ DOWN -0.0097