Moody’s Ratings Agency’s downgrading of South Africa’s sovereign credit rating to junk status (Baa3 to Ba1) was expected but couldn’t have come at a worse time given the country’s battle against the coronavirus, lockdown and the resulting economic turmoil.
To top it all South Africa was already struggling to achieve economic growth.
With the outlook remaining negative, this brings us in line with peer agencies Fitch and S&P Global who downgraded South Africa to junk status some three years ago.
There is now a strong possibility of capital outflow and a further deterioration of the rand, which does not bode well for workers and citizens alike.
Whilst unemployment is at an all-time high and this news adds to our woes, we appeal to government, business, our labour counterparts and broader society to not lose hope, but rather unite in finding the opportunities to pave the way for a better South Africa, for all its citizens.
For further enquiries or to set up a personal interview,
contact Stanford Mazhindu at 074 978 3415.