Posts tagged with 'Moody’s'

 

ANC regime has driven SA to junk status – GDP drops by 0.6% in 3rd quarter – SA is going to struggle to get rid of its economic crisis

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The financial decline that continues in South Africa has given the business sector reason to become more concerned about future business activities in most business areas.

Gross Domestic Product (GDP) declined by 0.6% in the third quarter of 2019, according to the Statistics Service’s report.

Calculated on a year-to-year basis, this is seen as a downturn that the economy has now stagnated, thereby having serious consequences for job creation.

The government hoped for a 1.5% growth rate, but economists warned that the target could not be achieved if sufficient new jobs were not created.

South Africa is now in a junk status phase, and although Moody’s is the only rating agency still trying to hide it, it’s clear that in the next decade the country will struggle to get rid of its economic crisis.

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Junk Status looms – Implementation of NHI will have disastrous consequences for SA economy

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AfriForum today sent a letter to President Cyril Ramaphosa, Finance Minister Tito Mboweni and Minister of Health Zweli Mkhize warning the civil rights organization that the implementation of national health insurance (NHI) could eventually lead to the downgrading of the country’s credit rating to junk status .

This comes after the credit rating agency Moody’s recently downgraded South Africa’s credit rating from a stable to a negative outlook. The reason for this downgrade according to Mood is the bleak growth prospects and growing public debt. In its letter, AfriForum argues that unaffordable, ideological policies such as the NHI will lead to South Africa being downgraded to junk status, as the country simply cannot fund it.

“To continue with the implementation of the NHI will not only be disastrous for the South African economy; it will also inflate government debt to levels that will make it impossible to escape the downgrade to
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Pull the generator closer and get those candles ready, Eskom #rollingblackouts will be with us shortly

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Eskom expressed its disappointment over the decision of the rating agency Moody’s that further downgraded the bankrupt entity of the state.

The Moody’s Investment Service downgraded Eskom from a B2 to a B3, which means the entity has no confidence in consumers or the rating agency.

With the downgrade, Eskom is brought into line with the poor performance of the ANC’s financial standing, and the distrust it creates at international and national level.

So the possibility exists that with the crisis management system, Eskom can once again start applying the load shedding system to alleviate its financial position, but the country will perish because of the impact it will have on the general financial position.

Late yesterday afternoon, Eskom acknowledged that it could reintroduce short notice “because the system is under pressure”, which is believed to be financial pressure.

 

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SA, the country once known as the most prosperous one on the African continent, is downgraded by Moody’s to position near to junk status

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While Cyril Ramaphosa delights in the Rugby players’ victory in Japan, Moody’s downgraded the country’s financial position near to junk status.

In the next 12 to 18 months, the Ramaphosa regime will have to implement good plans otherwise there will be another major setback for the country that was once known as the most prosperous one on the continent.

Moody’s is the last of the three major rating agencies to still show patience and not like Standard & Poor, as well as Fitch had previously seen the SA economy as a loser, and downgraded the country to junk status.

It is now becoming increasingly difficult for SA to borrow money, and investors are now more than ever hesitant to invest in a poor economic environment.

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ANC regime threatens financial survival of SA, Government debt increases every day

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The ANC government is extremely dangerous and threatens the financial survival of South Africa, as its eagerness to lend remains unsaturated.

This is the opinion of an economic adviser following the SA Reserve Bank’s announcement that government debt is rising faster than provided by any institution.

The government’s total loan debt has risen to a breathtaking level of just over 58% of the annual budget.

Experts point out that South Africa has now reached the point where Moody’s can no longer turn its head, and even if that were to happen, it is an undeniable reality that the country has landed deep into the abyss of being subjected to junk status, and may not be coming out of it again soon.

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Junk status winks for Mangaung Metro with liabilities exceeding assets; officials receive generous salaries and cellphone stipends, while levels of service delivery are non-existent

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The ANC-controlled Mangaung Metro faces junk status after Moody’s rating agency said further downgrading would be considered if the municipality do not urgently get its household in order.  

The Bloemfontein municipality is in truth already bankrupt with liabilities exceeding assets of nearly R1bn and with over R6bn of outstanding debt.  In fact, Moody’s indicated on their website that the metro was downgraded to Ba3 status on May 2, 2019.

In their response, the metro says a downgrade won’t affect service delivery and a financial recovery plan is in place. They argue that the weak economy, rising unemployment and increased water and electricity tariffs are the setback to their finances.

Meanwhile, it appears that the metro’s salary bill amounts to about R160 million a month, with a mobile phone stipend of R3’200 for about 70 councillors, each. In terms of debt, business enterprises owe the metro R1,6bn, residents
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