The Fitch rating agency downgraded Absa, Nedbank, FirstRand, Standard Bank, Investec, Eskom, Transnet and MTN to BB + i.e., junk status.

Standard & Poor’s Santam, downgraded Sanlam, Old Mutual, and Exxaro.

Most of the institutions have already succumbed to the government’s black economic empowerment requirements, without necessarily looking at the capacity of the appointments.

Economists point out that any company yielding to the government’s racist black empowerment policy, take the risk of walking the same path to junk.

Read the original article in Afrikaans on Die Vryburger

South Africa Today – South Africa News