Yasmeen Sewnarain
2 minute read
30 Mar 2020
6:09 am

Don’t blame Moody’s for ‘kick in the teeth’ downgrade

Yasmeen Sewnarain

Let’s not blame the international financial institutions – this time anyway – for our imploding economy.

Moody's expect the cost of serving the country's debt to continue rising and growth to be slow.

Predictably, politicians have jumped in to pillory international ratings agency Moody’s for downgrading South Africa’s investment status to junk. The agency has been characterised as heartless and cruel by announcing the downgrade as South Africa went into a national 21-day lockdown to slow down the spread of the coronavirus. There certainly is some merit in those accusations. It seems cynical to kick a country when it is down (or on the way down) because of a global catastrophe, which is entirely not of its making. It is also hurtful to see this sort of thing happening at a time when...