
Has a downgrade already been priced in by the markets?
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While he doesn't believe it's likely, it's not all bad news if a downgrade happens, says Chris Holdsworth, investment strategist at Investec Wealth & Investment. He points out that, historically downgrades have proven to be a buying opportunity as markets tend to price in the downgrade in advance, while the downgrade usually focuses the minds of governments to institute reforms that will address their weaknesses.