SA's sovereign rating, borrowing costs at risk after mine violence
Independent Online says that last week's deadly clashes between workers and police at Lonmin's Marikana mine - and the unresolved stand-off between the striking workers and mine management - could place South Africa's sovereign rating in jeopardy.
A spillover from the violence - which left 44 miners dead - has also been spiralling borrowing costs for corporates. Credit ratings determine the interest rate countries pay on their debt.
Konrad Reuss, the managing director of rating agency Standard and Poor's (S&P) in South Africa, said the events "certainly add to the concerns we already expressed in our negative ratings outlook on South Africa". S&P was one of three ratings agencies to change the outlook on the country's sovereign credit rating from stable to negative over the past 10 months - citing "persistent economic and social problems" as one of the reasons for the change.
According to Independent Online, the government is expected to comment on the implications of the Marikana problems after a cabinet meeting tomorrow (Wednesday).
Read the full article on www.iol.co.za/business
