Treasury set to meet Moody's officials
Officials will try to convince Moody’s not to downgrade SA as they do their best to restore the economy.
JOHANNESBURG - Treasury officials are set to spend the week trying to convince Moody's officials not to downgrade the country as they do their best to restore confidence in the economy.
Moody's announced last week South Africa had been placed on review for a downgrade, but stated that officials would visit the country this week to determine if government can help turn the economy around.
Finance Minister Pravin Gordhan has visited the US and UK to try and convince investors that South Africa is still a safe place to invest.
Financial advisor Paul Roelofse said a downgrade to junks status would devastate all South Africans.
"We're going to have to live with high inflation, weaker rand and certainly a higher interest rate into the future."
He said a study has shown that countries' battle to recover from a junk status rating.
On average, it takes about seven and half years for you to recover from a junk status rating."
It's hoped that Treasury and others will be able to convince Moody's not to downgrade South Africa as emerging market economies continue to battle.