Gordhan vows govt determined to avoid rating downgrade to 'junk'
South African Finance Minister Pravin Gordhan has vowed that the government will do whatever is necessary to avoid the country’s rating being downgraded to junk status, according to a report in Business Day on Tuesday.
“Government is very alive to our environment both global and local so we will make the right decisions in the interests of the country,” he said in an interview on Monday.
Gordhan told the Johannesburg-based daily that consensus was needed among business, the government and labour leaders to claw back lost credibility and that an action plan was being developed.
The rating agencies’ matrices were transparent and SA needed to improve its numbers “on a collective basis and act with the appropriate sense of urgency and cohesion”, he said.
International ratings agencies Fitch and Moody’s downgraded their ratings last month and Standard & Poor’s put SA on negative outlook. The country is on the verge of a downgrade to “junk” status.
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