Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

downgrade

Reply
Valued Contributor
Moody's has lowered SA A3 government credit rating outlook from stable to negative ..
0 Kudos
6 REPLIES 6
Not applicable
on the basis of what?
0 Kudos
Valued Contributor
who knows .. probably the coffee was cold this morn so they figured they'd eact revenge on some entity .. threw dice and landed on SA ??
0 Kudos
Highlighted
Super Contributor
Given the fact that our gov is promising more welfare through things like the NHI with shrinking tax receipts due to economy slowdowns Im not suprised. We have a heavily burdened existing tax base that cant really be squeezed more and yet they plan expenditure increases. It has to be financed through debt issuance or printing and look how well thats working out for the US and europe!
0 Kudos
Valued Contributor
now that sounds like rating agency speak ..
0 Kudos
Valued Contributor
official reason ==>heightened political risk from constrained public finances<==
0 Kudos
Regular Contributor
Unofficial reason: create newsflow to sell into the media and to clients. Bolster Moody's revenues. Moody's needs to differentiate their newsflow from other newsflow (i.e. they're all sick of talking and reading about Europe), so they looked around, cast their bones, had a smoke and concluded that they had been quiet on Africa lately and South Africa was going to be "it" for today.
0 Kudos