Ratings agency Standard’s and Poor’s slashed South Africa’s sovereign debt rating on Friday by one notch, blaming unrest affecting the country’s key mining sector.<\/p>\n
Following in the tracks of Moody’s which downgraded South Africa last month, S&P slashed the country’s benchmark credit rating from BBB+ to BBB.<\/p>\n
“In our view, the strikes in South Africa’s mining sector will likely feed into the political debate in the run-up to the 2014 elections, which may increase uncertainties related to the African National Congress’ future policy framework,” the agency said.<\/p>\n
“We also expect that South Africa’s underlying social tensions will increase spending pressures and reduce fiscal flexibility for the government,” it said.<\/p>\n
Work stoppages in the continent’s economic powerhouse started in August with workers downing tools at Lonmin platinum mine.<\/p>\n
Since then, more than 50 people have been killed in rolling strikes that have frequently turned violent and sent investors worrying.<\/p>\n
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