TASK TEAM TO INVESTIGATE
Cyril Ramaphosa warns downgrades will hit SA’s economy
Ratings agencies S&P Global Ratings and Fitch downgraded SA’s sovereign debt to junk status or subinvestment grade in the wake of President Jacob Zuma’s cabinet reshuffle
The recent credit-rating downgrades should not be taken lightly and will affect SA’s already struggling economy negatively, says Deputy President Cyril Ramaphosa. Ratings agencies S&P Global Ratings and Fitch downgraded SA’s sovereign debt to junk status or subinvestment grade in the wake of President Jacob Zuma’s cabinet reshuffle during which finance minister Pravin Gordhan and his deputy, Mcebisi Jonas, were dismissed. There is speculation the third ratings agency, Moody’s, could follow suit. While some of his cabinet colleagues, particularly Water and Sanitation Minister Nomvula Mokonyane, have played down the effects of the downgrade, Ramaphosa told MPs during a question-and-answer session in Parliament on Thursday the issue was serious. The government, business and labour were working closely to try to avert further downgrades and eventually improve SA’s credit rating, he said. The government was also setting up a task team involving business and labour to consider the implica...
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