DA to challenge Moody’s decision on rating report

SABC News Moodys 2 - DA to challenge Moody’s decision on rating report

The Democratic Alliance (DA) says it will write to credit rating agency, Moody‘s to request an explanation on why the agency held off on releasing a rating report for South Africa on Friday night.

The DA says it’s pleased that the country hasn’t been hit by another downgrade, but also concerned that the uncertainty around the report will make investors uneasy.

Moody’s has the country’s credit rating unchanged with a stable outlook, which is investment grade.

Fitch and Standard and Poor’s both downgraded South Africa to sub-investment grade or the so-called junk status in 2015.

DA Shadow Finance Minister, Alf Lees says:”The expectations for some kind of stability from Moody’s have not been met and this is not a good thing.”

“This is going to be inhibiting for investments in South African economy and the consequent creation of jobs. So we would like to see Moody does at least let us know why they chose not to change the sovereign credit rating.”

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