Zuma: We take the ratings agencies very seriously, but...

Cape Town – President Jacob Zuma said he is in favour of plans to set up a credit rating agency which would be more sympathetic to the needs of Brics nations.

Zuma was responding to questions in the National Council of Provinces on Tuesday when he was asked about his view on a separate credit rating agency for Brics nations to better cater to developing economies.

On October 16, Brazil, Russia, India, China and South Africa – collectively known as the Brics countries – resolved to establish their own credit rating agency to better cater to developing economies, rivalling existing ones based in developed nations.

READ: Brics to fast-track new credit rating agency

On the same question, Zuma also said ratings agencies are “very important”, as their ratings of a country’s sovereign debt and its ability to pay back borrowings give an indication to investors whether to invest in a country.

“We take ratings agencies and the work they do very seriously,” Zuma said during a question and answer session. “It is another mechanism through which government can take stock of the work it's doing."

Zuma said his government approaches fiscal policy “prudently”.

“We always seek to ensure there’s macroeconomic stability and that our public finances are sustainable. This has no doubt helped preserve South Africa’s credit rating. We take the agencies and the work they do very seriously,” Zuma said.

“But although they’re important, their ratings don’t necessarily have an impact on the agreements and commissions South Africa have entered into with other countries.”

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.82
-1.0%
Rand - Pound
20.14
-0.3%
Rand - Euro
17.02
-0.4%
Rand - Aus dollar
11.66
-1.0%
Rand - Yen
0.12
-0.8%
Gold
1,758.07
-0.2%
Silver
19.61
-0.9%
Palladium
2,143.00
-0.1%
Platinum
917.00
-1.3%
Brent Crude
93.65
+1.4%
Top 40
64,184
+0.0%
All Share
71,011
+0.1%
Resource 10
63,890
+1.1%
Industrial 25
86,864
-0.7%
Financial 15
16,201
+0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders