Reuters logo
S.Africa cenbank: downgrade could stop non-resident bond buying
November 9, 2017 / 4:01 PM / a month ago

S.Africa cenbank: downgrade could stop non-resident bond buying

JOHANNESBURG, Nov 9 (Reuters) - If South Africa’s credit rating is downgraded again there is a risk of a “sudden stop” in non-residents’ appetite for local bonds, the central bank said on Thursday.

“Domestic bonds may still remain attractive as they are classified as high-yielding securities,” the bank said in its latest financial stability review.

“However, from the financial stability perspective, there is a risk of a sudden stop in non-residents’ appetite for local bonds if South Africa were to be downgraded.” (Reporting by Olivia Kumwenda-Mtambo; Writing by Joe Brock; Editing by Ed Cropley)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below