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The ratings company said that it would maintain the economic risk score of '5' and assign an industry risk score of '3'. It says South Africa's low levels of wealth, high unemployment, social inequalities and large infrastructure needs are restraining long-term economic growth and political stability.
According to the Business Live report, S&P says the intermediate risk assessment of economic imbalances reflect the view that property prices and credit growth are likely to remain subdued. It says the banking sector is exposed through real estate lending and the high levels of household indebtedness.
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