Background to credit rating in South African context

Seminar paper from the year 2022 in the subject Business economics - Economic Policy, grade: 70%, , course: Debt Markets, language: English, abstract: This assignment reviews the implications of the downgrades on government¿s ability to raise funds through debt instruments as well as the role played by Covid-19 pandemic in raising funds by the government.

The COVID-19 dilemma is difficult for administrators of government borrowing. Borrowing pressures in several nations, such as South Africa, are probable to be worse than in the history in a variety of ways, such as the marked increase rise in finances needs, the pressure on efficient markets, and, for trying to develop and arising nations (EMDEs), a decline in external sector and changes of direction in capital flows. Whereas the majority of sovereign governments have credit ratings, most state agencies (states, provinces, or counties) do not. Considering the numerous advantages graded sub - national authorities enjoy, people living in emerging countries nevertheless confront significant challenges.