Covid-19: ‘Decision by Moody’s comes at the worst time’ – Mboweni
“South Africa, like many other countries, is seized with containing the outbreak of the coronavirus (Covid-19).”
Minister of Finance Tito Mboweni has said that the sub-investment rating by Moody’s presents South Africa with an opportunity.
Moody’s announced its decision to downgrade South Africa’s long term foreign and local currency debt ratings last night.
The announcement saw South Africa’s rating from Baa3 to Ba1, a notch below investment grade.
“It is with a heavy heart to note that all three major credit ratings agencies, currently rate South Africa at sub-investment grade. However, every crisis presents an opportunity.
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“The opportunity we have today is to unite and work together to address our challenges. We, as a people, have overcome insurmountable challenges in the past and we can still overcome it. We shall rise. We have to rise. We owe it to ourselves,” said Mboweni.
“The decision by Moody’s could not have come at a worse time. South Africa, like many other countries, is seized with containing the outbreak of the coronavirus (Covid-19)”.
The national lockdown will impact the county’s economy even further.
In an attempt to mitigate financial losses the South African Reserve Bank announced a set of interventions to stabilise financial markets and provide much-needed stability.
Government has said that it is committed to implementing structural economic reforms in the short and medium-term.
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These structures will hopefully address weak economic growth as well as the constrained fiscus and the ailing state-owned companies.
“The sustainability of government finances remains important and critical to attain and maintain, not only for credit ratings, but more importantly for the sake of South Africans,” National Treasury said.
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