(a) The effect of a rating downgrade will depend on:
(b) In general, the effect of a lower credit rating could result in the weakening of the exchange rate; capital outflows; and high borrowing costs. However, the focus of government is not to let South Africa go into junk status, by implementing:
(c) Further details are included in the 2016 Budget.
If we were to go into junk status and the impact last longer, it would mean that government has to look at its policies and demonstrates faster implementation of the National Development Plan.