Pessimism 'overdone' – international rating agency

INTERNATIONAL RATING agency Standard and Poor’s MD Konrad Reuss has described pessimism in the future economic development of South Africa as being overdone. “Growth will slow down and there will be challenges," he said last week. "2008 and 2009 will be a bit of roller-coaster ride and South Africa has its vulnerabilities when it comes to the macro side. But I think the capacity issues are being addressed and some of the things that happened in January are a wake-up call and reminder that things have to be addressed”. South Africa currently has a “stable” foreign currency rating by S&P. He also denied that political infighting within the ruling ANC was affecting South Africa’s ratings. “Since we assigned the rating in October 94, which is quite a while ago now, the rating has pretty much been moving in one direction. That’s been sort of upwards,” he said.