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.

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