CAPE TOWN – How the downgrade of South African credit ratings will affect individual investors depends very much on their personal circumstances. Nevertheless, we can make some broad generalisations, and you can decide whether they apply to you.
Credit ratings can have implications for all South Africans insofar as they affect the rand exchange rate and the yield on capital market instruments.
It is useful to think of the ratings of a country as the equivalent of a credit score from your bank manager. If you keep on spending more than your income, which is what the South African government has been doing since 2009, the manager will tell you that you need to change your behaviour. If you do not change your behaviour, your manager will…
Read the full article at: https://www.iol.co.za/personal-finance/investments/what-rating-downgrades-mean-for-investors-12662710
