[LISTEN] Moody's downgrade 'pulling the plaster off' for SA - Economist
Economist Francois Stoffberg says the decision by Moody's to downgrade South Africa to junk status is not all bad news.
"It's very good in terms of uncertainty because now, at least, the plaster is pulled off - we know we've been downgraded to junk, markets know it as well, now they can start pricing more effectively," says Stoffberg.
On Friday night, Moody's became the last of the three major credit agencies to move SA to junk status, a move Treasury said came at the worst time possible.
"To say we are not concerned and trembling in our boots about what might be in the coming weeks and months is an understatement,” Minister of Finance, Tito Mboweni said.
ALSO READ: Treasury on Moody's SA credit rating downgrade: 'It could not have come at a worse time'
Stoffberg says he was surprised at the move, given the uncertainty in the country amid the COVID-19 Coronavirus pandemic and lockdown.
However, he says it could pave the way for investors who can only invest in certain grade economies to now pump money into the country.
Listen to Stoffberg below: