Moody's playing wait and see game says economist

South Africa woke up to unpleasant news that rating agency Standard & Poor’s (S&P) has downgraded the country's credit status to sub-investment grade, commonly known as junk status.

On Tuesday Moody's said it will not issue its credit rating decision on South Africa this Friday, as previously scheduled, but will do so in the next 30 to 90 days.

Head economist at Econometrix Dr Azar Jammine says he thinks Moody's may at this point be taking some time to analyse what the Cabinet reshuffle would mean for economic policies.

He adds they may well want to see what the new Finance Minister has to offer and whether it will constructive or destructive for the countries fiscal strength.

Malusi Gigaba replaced Pravin Gordhan as Minister of Finance after President Jacob Zuma fired Gordhan and his deputy Mcebisi Jonas.

I do believe that they are waiting to see what is going to happen with the President because if the President were to step down right now the scenario would change quite dramatically and it will be filled with an era of optimism which we haven't seen in a long time.

Dr Azar Jammine, Head economist at Econometrix

Jammine says the trail of events that led to Gigaba's appointment doesn't give much hope in his ability as the new finance minister.

He can have that economic transformation if he incurs massive savings on corruption and wastage. But given Gigaba's image, I don't believe that people will give him much hope of doing that.

Dr Azar Jammine, Head economist at Econometrix

Adrian Gore, Business Leadership SA board member, described the downgrade to junk status as catastrophic and unnecessary.

We have to express our concerns and be clear about accountability. We have to focus on building the country and make an appeal to the President and the ruling party...

Adrian Gore, Business Leadership SA board member

To hear more on this interviews, listen below:


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
What being downgraded to junk status really means

What being downgraded to junk status really means

Wits Professor Patrick Bond and Financial Mail's Sikonathi Mantshantsha share their insights into the latest S&P downgrade.

Junk status not really a surprise - analyst

Junk status not really a surprise - analyst

Following recent leadership changes in government, investment analyst says it is not surprising that the country is downgraded.

SA junk status is treason against the poor- economist

SA junk status is treason against the poor- economist

International rating agency, Standard & Poor’s, has downgraded South Africa's credit rating to junk status.

‘Treasury [the new team] doesn’t acknowledge that we have a problem’

‘Treasury [the new team] doesn’t acknowledge that we have a problem’

Arabile Gumede interviews KPMG Senior Economist Christie Viljoen.

South Africa downgraded to junk status

South Africa downgraded to junk status

The rating change by Standard & Poor;s follows the announcement of President Zuma's Cabinet reshuffle

S&P reshuffles South Africa's credit rating to junk

S&P reshuffles South Africa's credit rating to junk

The rating agency says the decision was taken on the back of political and institutional uncertainty.

President risks reducing SA to junk status - Business Leadership SA

President risks reducing SA to junk status - Business Leadership SA

The President has received a lot of criticism, including from the ANC, for axing Ministers and his subsequent appointments.

Investor roadshows key to presenting 'united front' in SA, says Bonang Mohale

Investor roadshows key to presenting 'united front' in SA, says Bonang Mohale

Finance Minister Pravin Gordhan was called back from Treasury's investor roadshow and Bonang Mohale explains its importance.

Philando Castile is the 561st person to be killed by police in the US this year.

Philando Castile is the 561st person to be killed by police in the US this year.

The incident was filmed live on Facebook by his girlfriend just 1 day after another young man Alton Sterling, was killed by police

Popular articles
Lessons from the spectacular collapse of Steinhoff (e.g. diversity matters)

Lessons from the spectacular collapse of Steinhoff (e.g. diversity matters)

Bruce Whitfield interviews Gordon Institute of Business Science Dean (and marketing expert) Professor Nicola Kleyn.

Number of South Africans visiting the seaside has dropped

Number of South Africans visiting the seaside has dropped

Fedhasa's CEO is encouraging South Africans to take a look at the specials that are currently out there and make their bookings.

Casac to challenge Zuma's appeal of Abrahams High Court order

Casac to challenge Zuma's appeal of Abrahams High Court order

The National Prosecuting Authority (NPA) will appeal a High Court order that its head Shaun Abrahams leave office.

Instead of investigating state capture they are investigating me - Jacques Pauw

Instead of investigating state capture they are investigating me - Jacques Pauw

Journalist and author Jaques Pauw says he doesn't understand why he being investigated and summoned to appear before police.

 Metrorail central line trains suspended due to vandalism

Metrorail central line trains suspended due to vandalism

Metrorail regional manager, Richard Walker says criminals are making it hard for them to operate in the area.

Steinhoff money woes and why you should care

Steinhoff money woes and why you should care

The company lost around R100 billion leaving the JSE reeling in one of the biggest private sector business scandals.

How businessman Max Lichaba struck gold with his jewellery company

How businessman Max Lichaba struck gold with his jewellery company

Entrepreneur Max Lichaba built his own empire and is the CEO of Lichaba Creations and several other businesses. This is his story.