This is the opinion if official opposition party, the Democratic Alliance, who says in a statement it welcomes the fact that Moody’s released its credit opinion on South Africa.
The release of the Moody’s credit opinion was originally withheld, which caused great concern among investors and plunged the economy into even further uncertainty.
The DA then took the step to write to Moody’s to request that they release their credit opinion on South Africa.
The party is happy that Moody’s responded in good time. Moody’s said earlier on Tuesday that South Africa’s sovereign credit rating was still investment grade, further boosting the rand several days after the ratings agency delayed a review of the country’s creditworthiness.
According to Alf Lees , the DA Shadow Minister of Finance, among the factors that would lead to a junk status downgrade for South Africa is if government debt levels and contingent liabilities from state-owned entities continue to rise at unsustainable levels and if growth over the medium term persists at very low levels as recorded in 2018.
“The DA’s Fiscal Responsibility Bill can ensure that debt and contingent liabilities do not continue to spiral out of control. Together with the party’s focus to get the economy growing and to put a job in every home, a DA national government would change the trajectory of South Africa’s credit rating and for South Africa to be upgraded far above junk status,” says Lees.
