Moody’s downgrade strengthens the case for debate on the economy in Parliament
The decision by Moody’s to downgrade South Africa’s sovereign credit rating to "Baa3"‚ with a "negative outlook"‚ is more bad news‚ in a string of bad news‚ and is a clear vote of no confidence in finance minister Malusi Gigaba and President Jacob Zuma‚ the Democratic Alliance says. DA finance spokesman David Maynier said the decision by Moody’s highlighted the fact that "political developments" had a negative effect on "institutional strength" which "casts doubt over the strength of and sustainability of the recovery in growth and stabilisation of the debt-to-GDP ratio over the near term". "The ratings action means our long-term local currency debt‚ which forms 88.2% of our R2.2 trillion net debt‚ now hovers dangerously at one notch above ‘junk status’‚ with a negative outlook‚ following ratings actions by the two most important ratings agencies‚ Moody’s and Standard & Poor’s. "We will not sit back and do nothing when the economy has slipped into recession‚ and when a staggering 9....
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