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Agri SA has warned that the move by Moody’s to lower the Lank Bank and Eskom’s respective ratings pose a risk to food security and overall economic recovery.
Moody’s downgraded the Land Bank as a result of ongoing delays in the implementation of the financial institution’s restructuring plan and related liability and equity solutions.
However, Agri SA says Moody’s action on Eskom was warranted, owing to the combination of the utilities’ unsustainable capital structure and continuing financial needs.
Agri SA says both actions further reinforce the need for government to speedily and effectively implement measures that will see the challenges at SOEs being resolved.
MEDIA RELEASE: Agri SA notes with concern Moody’s downgrade to the Land Bank and Eskom
Read more here: https://t.co/HTw9nUvCUC#Moody #downgrade #landbank #eskom #concern #economy #agriculture #foodsecurity pic.twitter.com/iJw9a4E0lm
— Agri SA (@AgriSA1904) November 27, 2020
The agricultural organisation has called on National Treasury to swiftly capacitate the institution to preserve its viability and subsequently protect food security. It further calls for the continued support for Eskom.
The effective and swift implementation of policies and plans to turn around both the Land Bank and Eskom, however, remains a big concern to rating agencies.
Fitch and Moody’s downgrade South Africa’s sovereign credit rating into further junk status:
-Reporting by Khanyisile Manyoni
