President Cyril Ramaphosa on Monday said his administration will not waiver in the fight against Covid-19 despite rating agency Moody’s downgrading the country’s credit rating to junk status on Friday night.
Ramaphosa said that while Moody’s decision will significantly increase the cost of borrowing to fund government spending – it will not diminish his administration’s response to the COVID-19 pandemic.
“We are pushing ahead to implement the necessary health interventions and economic and social measures to contain the spread of the disease and alleviate its effects on our people,” Ramaphosa said.
“We remain committed to implementing structural economic reforms to address weak economic growth, constrained public finances and struggling state-owned enterprises.”
The decision by Moody’s was a further blow to the already weakened economy, which has already slipped into recession and is only beginning to grapple with the ramifications of the Covid-19 lockdown.
Finance Minister Tito Mboweni on Saturday said the decision could not have come at a worse time for the country. Andrew Golding, CEO of the Pam Golding Property group, said Moody’s decision gave room for the South African Reserve Bank to further interest rate cuts in April.
