'Treasury will address concerns raised by the rating agencie',says Malusi

Malusi Gigaba New Finance Minister  says Treasury will address concerns raised by the rating agencies.

Malusi is now currently holding a media briefing at the Treasury offices.

The minister is responding to credit rating agency Standard & Poor’s Global Ratings decision on Monday to downgrade South Africa's credit rating to junk status.

Moody's on Monday night also announced that it was placing the country’s sovereign credit rating on review.

Gigaba says Treasury will address concerns raised by the rating agencies.

Gigaba says the country is not under “junk status” until all three of the main rating agencies agree.

“What this means, as I said at the conclusion of my statement, is that it is a setback. But we have no reason to be despondent. It basically means that a number of variables now have to be considered. We have to look out for inflation, the rise in interest rates and a number of things.”

Gigaba added that he knew the country would be downgraded, as S&P Global had told him in confidence.

Gigaba says the focus now should be on supporting the private business sector.