Gigaba knew about S&P’s decision on Friday but did not say so due to ‘ethics’
Despite saying that a single individual could not bring down a country’s credit rating, Finance Minister Malusi Gigaba said he knew that S&P Global Ratings would downgrade SA’s sovereign outlook on Friday. Following the shock of S&P’s credit-rating downgrade that left SA on junk status with a negative outlook, Gigaba addressed the media at the Treasury on Tuesday, following a briefing with former Finance Minister Pravin Gordhan. "When I spoke on Saturday, I indicated that I had spoken to Moody’s and Fitch. S&P had already made the decision on Friday and there was nothing we could do to change that," said Gigaba. "The reason I didn’t take you into my confidence is because they had taken me into their confidence. I had to afford them the courtesy of not divulging the information." He said it was a matter of ethics. "SA has R2.2-trillion in public debt. R20bn of this debt is paid in foreign currency," said Gigaba. Yesterday, S&P lowered this debt to below investment grade. The downgrad...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.