Motlanthe pans Moody's downgrade

Deputy President Kgalema Motlanthe has criticised Moody's ratings agency for downgrading the outlook of South Africa from stable to negative.

He told business executives at the Gordon Institute of Business Science on Friday: "This downgrade took place in spite of overwhelming evidence that South Africa's banks avoided the global credit crisis because of regulatory mechanisms that prevented irresponsible lending and reckless investment in assets bundled to the US sub-prime housing market that precipitated the current crisis."

He cited the National Credit Act to regulate lending as a prime example.

Motlanthe said Moody's misinterpreted South African politics. "While there may be debate in the ANC there is a high level of discipline in government and we have proven over time that we stick to our commitments.

"We expect everybody and the ratings agencies to carefully consider the issues before making judgments which could influence investors negatively."