S&P cuts South Africa's credit rating one notchOctober 12, 2012 - 22:02 AMT PanARMENIAN.Net - Standard & Poor's on Friday, Oct 12, cut South Africa's credit rating one notch to BBB with a negative outlook, saying mining strikes and social tension could reduce fiscal flexibility and hurt growth, Reuters reported. "We expect underlying social tensions may result in amplified spending pressures and reduce fiscal flexibility for the government," S&P said in a statement. In particular, the ratings agency said mining strikes could influence political debate ahead of 2014 elections and "may increase uncertainties related to the African National Congress' future policy framework." S&P's downgrade from BBB-plus takes it one notch below both Moody's Investors Service's Baa1 rating with a negative outlook as well as Fitch Ratings' BBB-plus rating, also with a negative outlook. "The negative outlook reflects our view that the medium-term political, economic and fiscal ramifications of South Africa's social tensions could deteriorate beyond our current expectations," S&P said. S&P added that it sees South African growth softening to around 2.5 percent in 2012 and the budget deficit increasing to at least 5.1 percent of output. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Narek Manasyan wins European Boxing Championships silver for Armenia Armenia’s Narek Manasyan (92kg) won Armenia’s second silver medal at the European Boxing Championships 2024 on April 28. Blinken urges Azerbaijan to continue negotiations with Armenia Secretary of State Antony J. Blinken has urged Azerbaijani President Ilham Aliyev to continue negotiations with Armenia. Pashinyan, Blinken talk Armenia-U.S. ties over the phone Prime Minister Nikol Pashinyan had a phone conversation with US Secretary of State Antony Blinken on April 28, Pashinyan’s office reports. Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. |