Following reports that Moody's is expected to downgrade South Africa despite Finance Minister Malusi Gigaba's visit, CapeTalk's Kieno Kammies speaks to Economist Dawie Roodt about other countries that are downgraded.
Roodt says it doesn't matter which other countries have been downgraded. He says the downgrade has been long coming and economists have been expecting it based on the country's fiscal and unemployment numbers.
He says he doesn't believe the cabinet reshuffle was the main reason the country was downgraded to junk status.
This was just a confirmation we've been expecting.— Dawie Roodt, Chief economist and Director at The Efficient Group
Roodt says the rating agencies look at policies and political stability of a country before making a decision to down grade.
Gigaba has been recorded as saying he will continue with fiscal policy as it was. However, Roodt says if the minister continues with the fiscal policy the country could see another downgrade very soon.
To hear more of this conversation, listen below: