Related: Soaring Gold, Silver, Platinum ETFs Power Up
“In deciding to keep South Africa a notch or two above “junk” status, both Moody’s and S&P are throwing South Africa a lifeline. The ratings agencies’ message is simple – get things right or suffer the consequences,” reports the BBC.
In December, Fitch Ratings pared its rating on South African debt to just one level above junk while S&P reduced its outlook on the country’s bonds to negative from stable. The previously weak rand, the South African currency, was viewed as a possible driver of higher interest rates and a possible credit downgrade.
“South Africa has not been below investment grade since 1994,” according to the BBC. “Last month, the International Monetary Fund cut its 2016 forecast for South Africa to 0.6%, from 0.7%. The economy expanded by 1.3% in 2015.”
For more news on Gold ETFs, visit our Gold category.
iShares MSCI South Africa ETF
