COSATU deplores blackmail by credit rating agencies
The Congress of South African Trade Unions deplores the attempts by ‘ratings agencies' to influence and manipulate the South African government's policies, by threatening to downgrade the country's credit rating.
The latest example is Wednesday's statement by Standard & Poor's (S&P), following others by Moody's and Fitch.
S&P argue that there is "scope for a downgrade of SA's credit ratings if South Africa's economic disparities and social development needs persist, with the economy increasingly failing to generate the jobs required by an expanding labour force. Rising external or fiscal pressures could also lead to a downgrade, particularly if public sector wages or debt service costs increase above expectations."
They say however that they "could affirm the ratings at the current levels and revise the outlook to stable... if fiscal consolidation is supported by keeping public sector wage increases gradual and moderate."
These self-appointed economic and political ‘experts' add that they think that "looming economic and social pressures could gradually affect the country's policy framework. In the run-up to the 2014 elections, the ANC's centrist wing may make gradual concessions to the more populist expectations from within and without the party".