THE ANCWL STATEMENT ON STANDARD AND POOR DOWNGRADING SOUTH AFRICA INTO JUNK STATUS

3 April 2017

The African National Congress Women's League (ANCWL) is disappointed but not surprised by hasty the decision taken by Standard and Poor (S&P) to downgrade South Africa (SA) into junk status. 

The ANCWL  has been on record questioning the objectivity of S & P. Managing Director of S&P, Mr Konrad Reuss, when speaking in  panel during discussions on the outlook for Africa, at the Deloitte Africa 2017 Outlook Conference. He  allegedly indicated that amongst other factors that will impact on SA institutional assessment by S&P will be Cabinet reshuffle. The corrupt S&P that was fined around R26billion over the top grades it gave to subprime-mortgage bonds, has been earnestly waiting to deliver a junk status to SA if the President reshuffles the cabinet. 

SA must not be held at ransom by rating agencies that are serving a certain political agenda. S&P is not an apolitical institution and has interests on who has to be a Cabinet member. The ANCWL reiterates that S & P as an institution undermines the Constitutional right of the State President to appoint his Cabinet and make changes when he deems necessary.  

The ANCWL calls for the ANC government to persuade it's BRICS partners to speedily establish the BRICS rating agency. Corrupt rating agencies like S & P should not be allowed in the country. 

Statement issued by Meokgo Matuba, Secretary General, ANCWL, 3 April 2017