Gigaba knew about S&P downgrade ahead of time

Finance Minister Malusi Gigaba has revealed he knew as early as Friday that South Africa was going to be downgraded to junk status.

He says Standard & Poor's took him into its confidence.

On Saturday, Gigaba downplayed fears around a growing probability of a credit rating downgrade.

He has explained to journalists why he didn’t prepare the country for the cut.

Relaying the minister's words EWN reporter Gia Nicolaides says Gigaba won’t resign over the junk rating and he doesn't take it personally.

He still maintains that Treasury is strong enough to withstand any changes, and went on about how it doesn't matter if he is removed today or tomorrow... that shouldn't be the reason why we downgraded. It has everything to do with the institution. He has been trying to explain to the rating agencies that policy won't change and that the path Gordhan and his team have taken will continue.

Gia Nicolaides, EWN reporter

Click below to listen to the full report by Gia Nicolaides...

Meanwhile Moody's announced on Monday that it has placed South Africa on review for a downgrade and will not make its final call just yet.

It says the decision to initiate a review for downgrade was prompted by the abrupt change in cabinet.

South Africa’s sovereign is currently two notches above non-investment grade at Baa2.

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
Child spanking outlawed as court scraps use of 'reasonable chastisement' defence

Child spanking outlawed as court scraps use of 'reasonable chastisement' defence

The defence of reasonable chastisement of children has been declared unconstitutional in the Johannesburg High Court on Thursday.

SPCA expected to probe illegal bush racing in WC after Carte Blanche expose

SPCA expected to probe illegal bush racing in WC after Carte Blanche expose

The sport, which appears to be popular in the province, forces retired racing horses to run on tar roads for gambling purposes.

Markets not badly affected by downgrade - analyst

Markets not badly affected by downgrade - analyst

Standard & Poor's downgraded South Africa's credit rating to junk status or double B plus but markets factored in the inevitable.

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.

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

Popular articles
Estate agent Aida admits it’s the source of SA’s largest data hack ever

Estate agent Aida admits it’s the source of SA’s largest data hack ever

The Money Show’s Bruce Whitfield interviews Stuff magazine’s Toby Shapshak.

UCT engineering student creates affordable grey water system

UCT engineering student creates affordable grey water system

Nkosinathi Nkomo came up with a system that could turn grey water into usable water amidst the Cape Town water crisis.

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

The Money Show’s Bruce Whitfield interviews the former CEO of Africa’s largest retailer by far.

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

A policing expert explains that the airport shooting may be linked to the shooting at a Stellenbosch nightclub this past weekend.

Almost 30 million SA ID numbers compromised after site hacked

Almost 30 million SA ID numbers compromised after site hacked

Independent Marketing Consultant in the Technology Space, Andrew Fraser says this looks like a leak and not a hack.

Cape Town International Airport shooting could be gang related - ACSA

Cape Town International Airport shooting could be gang related - ACSA

The incident happened in the early hours of Wednesday morning.