By BUUMBA CHIMBULUTHE constant downgrading of the credit rating of emerging markets such as Zambia and South Africa is increasing the debt coupon payments for developing countries, says Economics Association of Zambia (EAZ). Recently, an international credit rating, Moody, downgraded South Africa’s credit rating to junk status, piling more anguish on an economy already in recession and battered by Africa’s worst coronavirus outbreak. Commenting on this, EAZ president Lubinda Haabazoka, said in an interview that such credit ratings were increasing the debts’ coupon payments for developing countries. “Rating agencies have become malicious as they serve the interests of their foreign investors by constantly downgrading the credit rating of emerging markets thereby increasing the coupon payments for developing countries. “Moody’s of recent hit the nail in South Africa’s coffin by declaring junk status at the time they are expected to issue more debt to cushion the negative impact caused by the 21 days lockdown,” he said. […]
Credit rating drop choking – EAZ
