Gigaba to meet with Moody’s to stave off downgrade
The new finance minister will try to convince the ratings agency that the country will ‘stay the course in terms of fiscal discipline’
On Thursday, SA’s new Finance Minister Malusi Gigaba said he would meet with ratings firm Moody’s to convince them that the country would stay on the path of fiscal discipline, in order to avoid a third credit downgrade. Gigaba, who replaced the respected Pravin Gordhan in a Cabinet reshuffle that triggered credit downgrades to sub-investment by S&P Global Ratings and Fitch, told local investors he would clarify Treasury’s policy positions to Moody’s in an upcoming road show overseas. "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. Reuters
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