Treasury calls on private sector, unions to help prevent further downgrades

On Friday night, the agency announced its decision which follows similar moves by S&P Global and Fitch.

Picture: EWN.

JOHANNESBURG - The National Treasury says it notes Moody’s decision to downgrade the country's foreign and local currency debt to BAA3 with a negative outlook.

On Friday night, the agency announced its decision which follows similar moves by S&P Global and Fitch.

They kept their ratings at BB+ with S&P Global keeping the local currency rating at BBB-.

Treasury says it recognises that Moody’s has cited the weakening of South Africa’s institutional strength.

Moody’s also says there are reduced growth prospects relating to policy uncertainty.

Added to this, there is also continued erosion of fiscal strength due to rising public debt and contingent liabilities.

Treasury says while Moody’s rating is still investment grade and there are more risks of downgrades, it has called on trade unions and the private sector to help prevent this from happening.

(Edited by Winnie Theletsane)