MTN, Telkom downgrades to have minimal impact

01 December 2020

Commenting on the downgrades, Peter Takaendesa, head of equities at Mergence Investment Managers, says: “Of course, the rating agencies are concerned more about the government finances outlook and implications on the rest of the economy. We believe most of this rating downgrade was already reflected in the debt markets as bond yields have remained relatively high in line with emerging market countries at lower ratings than South Africa.