Credit rating no economic effect

Florentia Roman
01 October 2012

Economist Dawie Roodt says South Africa’s credit rating downgrade by rating agency Moody’s will not have a serious effect on the economy.

Roodt says a rating agency like Moody’s looks at two variables when they determine a county’s ratings.

The first, if South Africa can repay their loans and secondly if it wants to repay them.

He says South Africa is definitely in a position to pay back its loans, but the second question is more complicated