'Downgrade of Emerging Economies in Times of Crisis, A Bad Idea'
A number of rating agencies have downgraded emerging market economies during the COVID-19 pandemic. This is not the first time ratings agencies have adopted a procyclical approach - that is, one in which bad news is simply piled on bad news, writes Mishak Mutize for The Conversation. Several African countries, including South Africa, Tunisia, Nigeria and Namibia are feeling the effects of Moody's, Standard & Poor's and Fitch changing their ratings.
Disappointment At S&P Downgrade
SAnews.gov.za, 30 April 2020
Government has expressed disappointment at rating agency S&P's decision to downgrade South Africa's sovereign rating amidst the COVID-19 pandemic. Read more »
Moody's Places Tunisia's B2 Rating On Review for Downgrade
Tunis Afrique Presse, 18 April 2020
The Moody's Investors Service (Moody's) has placed on Friday the Government of Tunisia's B2 issuer ratings on review for downgrade. Read more »
Moody's Affirms Nigeria's 'B2' Ratings, Negative Outlook
This Day, 17 April 2020
Moody's Investors Service yesterday affirmed Nigeria's 'B2' long-term issuer ratings and senior unsecured rating, its '(P)B2' senior unsecured programme rating and maintained its… Read more »
Moody's Should Not Be Made the Scapegoat for Government's Failures
Daily Maverick, 15 April 2020
Moody's recently downgraded South Africa to sub-investment grade, resulting in much local criticism of the rating agency. But Moody's was justified in taking this action, and the… Read more »
Fitch Downgrade Pours More Salt Into the Gaping Wound That Is the Economy
Daily Maverick, 6 April 2020
Rating agency Fitch has downgraded South Africa's credit rating, pushing it further down the junk scales. The downgrade sent the rand hurtling to fresh historic lows against the… Read more »
Do Credit Rating Reviews Make Any Sense in the COVID-19 Context?
Daily Maverick, 2 April 2020
As South Africans prepared for a 21-day lockdown, a sovereign credit rating downgrade that had hung like the Sword of Damocles over the country was pushed to the back of the… Read more »
As the world feels the economic and social impact of COVID-19, South Africans awoke to the news that rating agency Moody's downgraded the economy to junk status, essentially ... Read more »
The rand has made strong gains against the dollar after avoiding a "junk status" credit rating from Moody's Investors Service. The Baa3 rating - the lowest category in the ... Read more »
'BB+' - Ratings agency Fitch has decided not to downrank the country further into junk status. By doing so it gives the government an opportunity to address issues that can ... Read more »