Ratings agencies too eager to downgrade SA

READING between the lines, I find it disheartening how some parties and individuals readily accept the downgrading of our country without question. Some, I suspect, are even gloating and hoping the downgrading by the three rating agencies can hasten regime change.

With this downgrading we are all going to suffer heavily – and the poor will be the worst-affected community.

My understanding of these agencies is that they are supposed to rate and downgrade if that country fails to pay and honour its international debts and commitments, etc. Not because of the political situation. I suspect the downgrading has more to do with politics.

Just recently we have seen some highly respected and reputable international companies and executives fall by the wayside because of their interference in our country’s domestic and political affairs.

They were primarily influenced and misguided by some individuals who had their own political agendas.I hope this is not a repeat of the same and we all remember what happened to KPMG, Bell Pottinger and others.

To give credence to my argument about the agencies, I hasten to bring the following to readers’ attention.

This is what was concluded by a commission that was set up by the US government to investigate the country’s devastating 2007- 2010 financial crisis:

“As the Financial Crises Inquiry Commission, we conclude the failures of the credit rating agencies were essential cogs in the wheel of financial destruction. The three credit rating agencies were key enablers of the financial meltdown.”

The end result was that the commission was very critical of the three big rating agencies which are now focusing their attention on South Africa.

In essence, the US was going through a financial crisis but the problem was exacerbated in a big way by the interference of the agencies, which subsequently caused the final meltdown of the US economy.

My reason for reminding readers of the above happenings is because I see the same scenario playing itself out here.

Yes, we have a government that is in disarray and we are going through a financial and political crisis. But the next elections are not too far off and our beleaguered president won’t stand again.

After all, everybody rightly or wrongly believes that Jacob Zuma is the main stumbling block to the recovery of our economy. The only way to bring political or regime change is through the ballot box. I ask myself why the agencies have not taken the above into consideration.

Whoever takes charge after the next election, things can’t get worse. They most definitely can only improve.

I am not a politician or a financial expert and I am not affiliated to any political party. I am just an ordinary citizen praying for a better future for all and for our beautiful country.

I see a unique world-class country with a bright future, unique in away that we are different to any other third world or developing countries. We have an affluent upper class and a fast-growing middle class. We have the capacity to grow and, in the process, be able to do much more to alleviate the plight of the poor.

We also have world-class facilities and infrastructure. Sadly, we reportedly have the highest crime rate in the world.

In conclusion, I find it very strange that all three rating agencies are in such a hurry to downgrade a country with so much potential to junk status.