S. African cabinet vows to protect investment status

The South African cabinet on Thursday vowed to protect the country's investment status as the country's credit rating is at the risk of being downgraded by international rating agencies.

"Cabinet calls on all sectors to join government in a united front to protect our country's investment status," Minister in the Presidency Jeff Radebe said at a press briefing in Cape Town after a fortnightly cabinet meeting.

The meeting discussed, among others, issues relating to efforts to avoid a further downgrade of South Africa's credit rating.

International ratings agencies Moody's, Fitch and Standard & Poor's will in the coming weeks announce their decision on the country's investment rating grade.

Moody's has warned that it would downgrade South Africa's rating if its economic growth fell below its estimated growth of 0.2 percent this year.

Moody's currently rates South Africa two notches above sub-investment grade at Baa2 with a negative outlook, while Fitch and Standard and Poors rate the country one notch above sub-investment status.

Moody's expects South Africa's growth to tick up to 1.1 percent in 2017 and 2.0 percent the year after. Its next review of South Africa is expected on Nov. 25.

The rating agencies say political infighting, weak economic growth and mounting debt at state-owned companies all pose a downward risk.

Economists say a further downgrade would plunge South Africa into recession. Endit