Rating Decision Tomorrow: “To Junk or not to Junk?”

The dreaded day is on our doorsteps, where a whole country may pay the price for an inept leadership that rather cackles and buys new planes than setting examples and incentives for an ailing economy! Tomorrow is Friday, or Junk Day?

Opposition (DA) leader Mmusi Maimane has pleaded with ratings agency Standard and Poor’s (S&P) not to downgrade South Africa to junk status, ahead of the agency’s decision tomorrow. “I want to urge today to S&P. Tomorrow you make a decision about the downgrade – we don’t want a downgrade. The ANC is already in junk status. We don’t want South Africa in junk status,” he said.

Maimane asked S&P to give the DA two months to govern and change the economy in major metropolitans: “We are saying to rating agencies, give us a few months, a new government is coming to Tshwane, it will change the capital city to have capital. It will create new capital in Johannesburg. “Please give us some time… A government that is coming under the DA will make sure the young people will be able to find work and there is no corruption and make sure there is a delivery of services,” he said.

Maimane urged rating agencies to stop considering the ANC in their decisions. He said the infighting in the ANC was exposing its inability to govern. “A downgrade is not going to help us. I am here to appeal today to S&P… please don’t judge South Africa on the standards of the ANC. They are fighting among each other. Leave those people,” he urged.

S&P’s visited South Africa two weeks ago to scrutinise its credit worthiness. The country is one point above junk status in S&P’s credit rating. Should S&P downgrade South Africa, cost to local debt would be hiked and cause potential damage to investment. Access to international sources of credit and loans would be no longer accessible and South Africa will lack funding for the remaining, now ambitious, infrastructure projects!

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