Moody's. Picture: REUTERS
Moody's. Picture: REUTERS

Lucie Villa of Moody’s Investors Services has done it again. She said on Tuesday that SA is safe from a credit rating downgrade for the next 12 to 18 months, with a positive outlook.

So now the government can lie back and relax, when SA’s debt is more than R3-trillion and growing, and our debt to GDP ratio is topping 60% and heading higher.

Villa projected that our GDP growth for the year will be down to 0.7% from her last projection of 1%, though the SA Reserve Bank, the World Bank and the IMF have already reduced their growth outlooks.

But isn’t Moody’s the same ratings agency that gave a clean bill of health to, and kept a triple-A investment rating for, AIG, Lehman Brothers, Bear Stearns and others — until they all went belly up back in September 2008? This brought on a global economic crisis reminiscent of the Great Depression.

Given that Moody’s is a company, not a charity, why is it still giving SA glowing and positive outlooks when the other two ratings agencies downgraded us more than two and a half years ago?

Jean Michel Bouvier
Bryanston