Gigaba to meet with Moody’s to stop them from downgrading SA
Finance Minister Malusi Gigaba said on Thursday he would meet with ratings firm Moody’s to convince them the country would stay on the path of fiscal discipline, to avoid a third credit downgrade, according to a report by Reuters.
“We will do all we can to avoid another downgrade and one of the ways to do that is to engage with Moody’s directly, to demonstrate our willingness to stay the course in terms of fiscal discipline and fiscal consolidation,” Gigaba told the media after briefing investors at parliament.
Gigaba’s replacement of Gordhan in a cabinet reshuffle triggered credit downgrades to sub-investment by two of the world’s biggest rating agencies S&P Global Ratings and Fitch.
Ratings agency Moody’s said that it would be monitoring the situation in the country further before issuing its rating at a later date.
However Gigaba may be met with some resistance, as his first act of finance minister was to announce that radical economic transformation was at the top of his agenda.
“We need to radically transform the South African economy, such that it works for all South Africans, including those who have been and still continue to this day to be marginalized – the working people and the poor, black people in general, women and youth,” minister Gigaba said upon his appointment.
However at the investor meeting on 13 APril , Gigaba said that he planned to clarify Treasury’s policy positions to Moody’s on an upcoming roadshow overseas.
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